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The 6th InTraders

International Conference on International


Trade

Proceeding Book

EDITORIAL BOARD

Assoc. Prof. Dr. Leena Jenefa


Mamoona Rasheed
Kürşat Çapraz

InTraders Academic Platform


www.intraders.org
Publisher

Kürşat ÇAPRAZ

e-ISBN: 978-605-69427-6-1
Editorial Board

Assoc. Prof. Dr. Leena Jenefa, India

Mamoona Rasheed, Pakistan

Kürşat ÇAPRAZ, Turkey

e-ISBN: 978-605-69427-6-1

Edition: First Edition 21 December 2020 Sakarya, Turkey

Language: English

© All rights reserved. The copyright of this book belongs to Kürşat ÇAPRAZ, who published the book
according to the provisions of Turkish Law No. 5846. Not sold with money. It cannot be reproduced
or copied by any electronic or mechanical recording system or photocopy without the permission of
the publisher. However, short citation can be made by showing the source. University Libraries and
similar public institutions may add books to databases provided that they are open and free access
without permission.

Publisher

Kürşat ÇAPRAZ

InTraders Academic Platform

Sakarya University Faculty of Political Sciences. Serdivan Sakarya, Turkey www.intraders.org

info@intraders.org
The 6th InTraders International Conference on International Trade Proceeding Book 5-9
October 2020 (e-conference) https://www.intraders.org/october
e-ISBN: 978-605-69427-6-1
1
Regultory Board

Kürşat ÇAPRAZ Sakarya University Turkey


Assoc. Prof. Dr. Ekrem ERDOĞAN Sakarya University Turkey
Prof.Dr. ADRIANA SCHIOPOIU University of Craiova Romania
BURLEA
Ph.D. Faculty Member Mustafa YILMAZ Sakarya University of Applied Turkey
Sciences
Prof. Dr. Georgeta Soava University of Craiova Romania

Dr. Laurentiu Stelian MIHAI University of Craiova Romania


Ph.D. Faculty Member Catalin Aurelian University of Craiova Romania
Rosculete
Lect. Sobia Hassan Lahore College for Women University Pakistan
Assoc. Prof. Dr. Yurdagül Meral İstanbul Medipol University Turkey
Assoc. Prof. Dr. Nurten Polat Dede İstanbul Medipol University Turkey
Assoc. Prof. Dr. Omar Khalid Bhatti İstanbul Medipol University Turkey
PhD. İnanç Kabasakal Ege University Turkey

PhD.Faculty Member Cihat Köksal İstanbul Commerce University Turkey


PhD.Faculty Member Liza Alili Sulejmani International Balkan University Macedonia
Ph.D. Faculty Member Dilşad Sakarya University Turkey
TÜRKMENOĞLU KÖSE
Mamoona RASHEED University of Central Punjab Pakistan
Ph.D. Faculty Member Natalija SHIKOVA International Balkan University Macedonia
Ph.D. Faculty Member Joanna HERNIK West Pomeranian University of Poland
Technology
Ph.D. Faculty Member Hilal ALPDOĞAN Sakarya University of Applied Sciences Turkey
Assoc.Prof. Phd. Vatuiu TEODORA Titu Maiorescu University Romania
Lect. Hina Zahoor İstanbul Gelişim University Turkey
PhD. Tunahan Hacıimamoğlu Recep Tayyip Erdoğan University Turkey
Lect. Muhammed Shahzeb Khan Yousufzai Mohammad Ali Jinnah University Pakistan

The 6th InTraders International Conference on International Trade Proceeding Book 5-9
October 2020 (e-conference) https://www.intraders.org/october
e-ISBN: 978-605-69427-6-1
2
Advisory Board

Prof. PhD. ADEM UĞUR Sakarya University, Turkey


Prof. PhD. AHMET VECDİ CAN Sakarya University, Turkey
Prof. PhD. ERMAN COŞKUN Sakarya University, Turkey
Prof. PhD. MAHMUT BİLEN Sakarya University, Turkey
Assoc.Prof. PhD. NEVRAN KARACA Sakarya University, Turkey
PhD. Faculty Member ADEM AKBIYIK Sakarya University, Turkey

PhD. Faculty Member KAMİL TAŞKIN Sakarya University, Turkey


PhD. Faculty Member MUSTAFA YILMAZ Sakarya University of Applied Sciences, Turkey
PhD. Faculty Member ASENA BOZTAŞ Sakarya University of Applied Sciences, Turkey
Prof. PhD. MAGDALENA MIHAI University of Craiova, Romania
Prof. Phd. ADRIANA SCHIOPOIU University of Craiova, Romania
BURLEA
Prof. PhD. CRISTIAN OVIDIU University of Craiova, Romania
DRAGAN
PhD. Faculty Member TAHİR BENLİ Kastamonu University, Turkey
Assoc.Prof. PhD. TEODORA VATUIU Titu Maiorescu University Bucharest, Romania
Lect. PhD. DINUCA ELENA CLAUDIA Titu Maiorescu University Bucharest, Romania
Asst. Prof. PhD. NATALIJA SHIKOVA International Balkan University, Macedonia
PhD. Faculty Member SHENER BILALLI International Balkan University, Macedonia
Assoc.Prof. PhD. ALEKSANDRA International Balkan University, Macedonia
PORJAZOSKA

KUJUNDZISKI
PhD. Faculty Member ARKADIUSZ MALKOWSKI West Pomeranian University of Technology, Poland

PhD. Faculty Member DAWID DAWIDOWICZ West Pomeranian University of Technology, Poland

PhD. Faculty Member ELŻEBIETA JAWORSKA West Pomeranian University of Technology, Poland
PhD. Faculty Member JOANNA HERNIK West Pomeranian University of Technology, Poland
Prof. Ast. PhD. SHAIP BYTYÇI AAB College (University), Kosova

The 6th InTraders International Conference on International Trade Proceeding Book 5-9
October 2020 (e-conference) https://www.intraders.org/october
e-ISBN: 978-605-69427-6-1
3
Conference Secretariat

Kürşat ÇAPRAZ Sakarya University Turkey


Assoc.Prof. Phd. Vatuiu TEODORA Universitatea Titu Maiorescu Romania
Assoc. Prof. Dr. Asena Sakarya University of Applied Sciences Turkey
Boztaş
Res. Asst. Özge Alev Sönmez Çalış Sakarya University Turkey
PhD. Elif Alp Sakarya University Turkey
Zuura ASHIMOVA Manas University Kyrgyzstan
Fani MATESKA Ss. Cyril and Methodius University in Skopje Macedonia
Lect. Taleh HALILOV Nakhchivan State University Azerbaijan
PhD. Irina Raluca BADEA University of Craiova Romania
Celal ALPDOĞAN Sakarya University Turkey

The 6th InTraders International Conference on International Trade Proceeding Book 5-9
October 2020 (e-conference) https://www.intraders.org/october
e-ISBN: 978-605-69427-6-1
4
Scientific Board of InTraders Academic Platform

Prof.Dr. Abdullah Soysal Kahramanmaraş Sütçü İmam University


Prof.Dr. Adem Uğur Sakarya University
Prof.Dr. Ahmet Ağca Kütahya Dumlupınar University
Prof.Dr. Belkıs Özkara Afyon Kocatepe University
Prof.Dr. Burcu Demirel Akdeniz University
Prof.Dr. Canan Madran Dokuz Eylül University
Prof.Dr. Daniel Lacalle IE Business School, Instituto de Empresa, UK
Prof.Dr. Deniz Elber Börü Marmara University
Prof.Dr. Erdoğan Gavcar Muğla Sıtkı Koçman University
Prof.Dr. Ergin Uzgören Kütahya Dumlupınar University
Prof.Dr. Fehim Bakırcı Atatürk University
Prof.Dr. Fikret Çankaya Karadeniz Teknik University
Prof. Dr. Georgeta Soava University Of Craiova, Romania
Prof. Dr. Hakan Çetintaş Kırgızistan-Türkiye Manas University
Prof. Dr. Hakan Er Akdeniz University
Prof. Dr. Hasan Tutar Sakarya University
Prof. Dr. Hatem El-Gohary Birmingham City University, UK
Prof. Dr. Hatice Doğukanlı Çukurova University
Prof. Dr. Himmet Karadal Aksaray University
Prof. Dr. Hüsniye Örs Gazi University
Prof. Dr. Ionel Barbu Aurel Vlaicu University, Romania
Prof. Dr. İrfan Kalaycı İnönü University
Prof. Dr. İzzet Kılınç Düzce University
Prof. Dr. Levent Gökdemir İnönü University
Prof. Dr. Lidija Pulevska Ivanovska Ss. Cyril And Methodius University in Skopje,
Macedonia
Prof. Dr. Lutfiye Ödemir İnönü University
Prof. Dr. Mahmut Bilen Sakarya University
Prof. Dr. Mahmut Masca Afyon Kocatepe University
Prof. Dr. Mahmut Yardımcıoğlu Iğdır University
Prof. Dr. Mehmet Emin Karaaslan Işık University
Prof. Dr. Mehmet Erkan İstanbul University
Prof. Dr. Mehmet Marangoz Muğla Sıtkı Koçman University
Prof. Dr. Mehmet Sadık Öncül Cumhuriyet University

The 6th InTraders International Conference on International Trade Proceeding Book 5-9
October 2020 (e-conference) https://www.intraders.org/october
e-ISBN: 978-605-69427-6-1
5
Prof. Dr. Meltem Nurtanış Velioğlu Bolu Abant İzzet Baysal University
Prof. Dr. Meltem Onay Celal Bayar University
Prof. Dr. Muhsin Halis Kocaeli University
Prof. Dr. Murat Çetin Namık Kemal University
Prof. Dr. Murat Erdoğan Kastamonu University
Prof. Dr. Müslüme Narin Gazi University
Prof. Dr. Ömür Neczan T. Özmen Dokuz Eylül University
Ss. Cyril And Methodius University in Skopje,
Prof. Dr. Pece Nedanovski
Macedonia
Prof. Dr. Rahmi Yamak Karadeniz Teknik University
Prof. Dr. Rasim Yılmaz Namık Kemal University
Prof. Dr. Recep Gunes İnönü University
Prof. Dr. Remzi Altunışık Sakarya University

Prof. Dr. Ruziye Cop Bolu Abant İzzet Baysal University


Prof. Dr. Sabri Erdem Dokuz Eylül University
Prof. Dr. Selçuk Akçay Afyon Kocatepe University
Prof. Dr. Selçuk Perçin Karadeniz Teknik University
Prof. Dr. Seyit Köse Bolu Abant İzzet Baysal University
Prof. Dr. Sima Nart Sakarya University
Prof. Dr. Songül Kakilli Acaravcı Mustafa Kemal University
Prof. Dr. Ünal Halit Özden İstanbul Ticaret University
University of Petroleum and Energy Studies,
Prof. Dr. V. J. Byra Reddy
India
Prof. Dr. A.Varadaraj Meası Instıtute Of Management, Hindistan
Assoc.Prof.Dr. Abidin Öncel Sakarya University
Assoc.Prof.Dr. Adem Göleç Erciyes University
Assoc.Prof.Dr. Ali Rıza Sandalcılar Recep Tayyip Erdoğan University
Assoc.Prof.Dr. Ali Şahin Örnek Çanakkale Onsekiz Mart University
Assoc.Prof.Dr. Arsena Gjipali University Of Tirana, Albania
Assoc.Prof.Dr. Aytekin Fırat Muğla Sıtkı Koçman University
Assoc.Prof.Dr. Bayram Topal Sakarya University

The 6th InTraders International Conference on International Trade Proceeding Book 5-9
October 2020 (e-conference) https://www.intraders.org/october
e-ISBN: 978-605-69427-6-1
6
Assoc.Prof.Dr. Bernard/Dosti University Of Tirana, Albania
Assoc.Prof.Dr. Burhanettin Zengin Sakarya Universitesi
Assoc.Prof.Dr. Cavadxan Qasımov Azerbaycan Milli Elmler Akademisi Naxçıvan
Bölmesi
Assoc.Prof.Dr. Celile Özçiçek Dölekoğlu Adana Bilim ve Teknoloji University
Assoc.Prof.Dr. Clipa Otilia Stefan Cel Mare From Suceava, Romania
Assoc.Prof.Dr. Doriana Dervishi University Of Tirana, Albania
Assoc.Prof.Dr. Duygu Kızıldağ Afyon Kocatepe University
Assoc.Prof.Dr. Erdoğan Öztürk Karabük University
Assoc.Prof.Dr. Fahri Erenel İstinye University
Assoc.Prof.Dr. Fatih Konur Bolu Abant İzzet Baysal University
Assoc.Prof.Dr. Fikret Birdişli Kahramanmaraş Sütçü İmam University
Assoc.Prof.Dr. Füsun Çelebi Boz Bayburt University
Assoc.Prof.Dr. Gadaf Rexhepi South East European University, Macedonia
Assoc.Prof.Dr. Güzin Özdağoğlu Dokuz Eylül University
Assoc.Prof.Dr. Halim Tatlı Bingöl University
Assoc.Prof.Dr. Harun Yakışık Çankırı Karatekin University
Assoc.Prof.Dr. Hasan Ayyıldız Karadeniz Teknik University
Assoc.Prof.Dr. Ivana Dražić Lutilsky University Of Zagreb, Croatia
Assoc.Prof.Dr. Jeton Mazllami South East European University, Macedonia
Assoc.Prof.Dr. Joanna Hernik West Pomeranian University Of Technology in
Szczecin, Poland
Assoc.Prof.Dr. Kahraman Kalyoncu Aksaray University
Assoc.Prof.Dr. Kıvanç Halil Arıç Cumhuriyet University
Assoc.Prof.Dr. Lidiia Pashchuk Taras Shevchenko National University Of Kyiv,
Ukrania
Assoc.Prof.Dr. Ljubisa Stefanoski International Balkan University, Macedonia
Assoc.Prof.Dr. Ljupco Eftimov Ss. Cyril And Methodius University, Macedonia
Assoc.Prof.Dr. Mahmut Akbolat Sakarya University
Assoc.Prof.Dr. Mehmet Mustafa İnönü University

The 6th InTraders International Conference on International Trade Proceeding Book 5-9
October 2020 (e-conference) https://www.intraders.org/october
e-ISBN: 978-605-69427-6-1
7
PhD.Faculty Member Berfu İlter Afyon Kocatepe University
PhD.Faculty Member Beşir Koç Bingöl University
PhD.Faculty Member Beyza Sümer Dokuz Eylül University
PhD.Faculty Member Bilal Bağış Bingöl Üniv. / İstanbul 29 Mayıs Üniv.
PhD.Faculty Member Bilge Aksay Adana Bilim ve Teknoloji University
PhD.Faculty Member Bilgehan Tekin Çankırı Karatekin University
PhD.Faculty Member Burcu Oralhan Nuh Naci Yazgan University
PhD.Faculty Member Bülent Altay Afyon Kocatepe University
PhD.Faculty Member Büşra Tosunoğlu Gümüşhane Universitesi
PhD.Faculty Member Can Köse Çanakkale Onsekiz Mart University
PhD.Faculty Member Cumhur Şahin Bilecik Şeyh Edebali University
PhD.Faculty Member Çağatay Karaköy Cumhuriyet University
PhD.Faculty Member Darko Lazarov University Goce Delchev, Macedonia
PhD.Faculty Member Dawid Dawidowicz West Pomeranian University Of Technology in
Szczecin, Poland
PhD.Faculty Member Dejan Zdraveski University “St. Kliment Ohridski”-Bitola,
Macedonia
PhD.Faculty Member Deniz Akgül Ahi Evran University
PhD.Faculty Member Dilşad Türkmenoğlu Köse Sakarya University
PhD.Faculty Member Ebru Kanyılmaz Polat Çanakkale Onsekiz Mart University
PhD.Faculty Member Ebru Onurlubaş Trakya University
PhD.Faculty Member Edgardo Sica University Of Foggia, İtalya
PhD.Faculty Member Elif Tuba Beydilli Kütahya Dumlupınar University
PhD.Faculty Member Emine Şener Ahi Evran University
PhD.Faculty Member Emrah Tokgöz Çanakkale Onsekiz Mart University
PhD.Faculty Member Ercan Yaşar Kütahya Dumlupınar University
PhD.Faculty Member Erdoğan Kotil Bolu Abant İzzet Baysal University
PhD.Faculty Member Esin Benhür Aktürk İstanbul Aydın University
PhD.Faculty Member Eymen Gürel Muğla Sıtkı Koçman University
PhD.Faculty Member Faisal Rana Effat University, Jeddah, Saudi Arabia
PhD.Faculty Member Fatih Ayhan On Yedi Eylül University
PhD.Faculty Member Fatma Temelli Ağrı İbrahim Çeçen University
PhD.Faculty Member Feriyal Aslam Pakistan Institute Of Development Economics,
Pakistan
PhD.Faculty Member Fikret Yaman Afyon Kocatepe University
PhD.Faculty Member Gizem Yıldız Gümüşhane University

The 6th InTraders International Conference on International Trade Proceeding Book 5-9
October 2020 (e-conference) https://www.intraders.org/october
e-ISBN: 978-605-69427-6-1
8
PhD.Faculty Member Gökhan Baral Sakarya University
PhD.Faculty Member Gökhan Karhan Batman University
PhD.Faculty Member Gökmen Kılıçoğlu Düzce University
PhD.Faculty Member H.Özlem Yalaz Akdeniz University
PhD.Faculty Member Hale Kırmızıoğlu Ahi Evran University
PhD.Faculty Member Hatice Sarıaltın Sakarya University
PhD.Faculty Member Hasan Bilgehan Yavuz Adana Bilim ve Teknoloji University
PhD.Faculty Member Huriye Gonca Çınar Afyon Kocatepe University
PhD.Faculty Member Hülya Çınar Kütahya Dumlupınar University
PhD.Faculty Member Hülya Öcal Afyon Kocatepe University
PhD.Faculty Member Irena Ashtalkoska Fon University Skopje, Macedonia
PhD. Irina Badea Raluca University of Craiova, Romania
PhD.Faculty Member Irmak Erdoğan Altınbaş University
PhD.Faculty Member İbrahim Alkara Bilecik Şeyh Edebali University
PhD.Faculty Member İbrahim Çütcü Hasan Kalyoncu University
PhD.Faculty Member İbrahim Taha Dursun Sakarya University
PhD.Faculty Member İrem Tore Adana Bilim ve Teknoloji University
PhD.Faculty Member İsmail Elagöz Çanakkale Onsekiz Mart University
PhD.Faculty Member İsmail Seki Çanakkale Onsekiz Mart University
PhD.Faculty Member İstemi Çömlekçi Düzce University
PhD.Faculty Member Kenan Göçer Sakarya University
PhD.Faculty Member Kumru Uyar Nuh Naci Yazgan University
PhD. Faculty Laurentiu Stelian MIHAI University of Craiova
Member
Ph.D.Faculty
Catalin Aurelian Rosculete University of Craiova
Member
Ph.D.Faculty Rosculete Elena University of Craiova
Member
PhD.Faculty Member Levent Şahin Çankırı Karatekin University
PhD.Faculty Member Leyla İçerli Aksaray University
PhD.Faculty Member Liza Alili Sulejmani International Balkan University, Macedonia
PhD.Faculty Member Ljubisa Stefanoski International Balkan University, Macedonia
PhD.Faculty Member Mehmet Nuri Salur Necmettin Erbakan University
PhD.Faculty Member Mehmet Sedat Uğur Çankırı Karatekin University
PhD.Faculty Member Mehmet Zeki Ak Sakarya University
PhD.Faculty Member Mihriban Cindiloğlu Hitit University

The 6th InTraders International Conference on International Trade Proceeding Book 5-9
October 2020 (e-conference) https://www.intraders.org/october
e-ISBN: 978-605-69427-6-1
9
PhD.Faculty Member Monika Angeloska- University St. Kliment Ohridski Bitola,
Dichovska Macedonia
PhD.Faculty Member Mustafa Koçancı Akdeniz University
PhD.Faculty Member Mustafa Yılmaz Sakarya University
PhD.Faculty Member Mübeyyen Tepe Trakya University
Küçükoğlu
PhD.Faculty Member Müslüm Polat Bingöl University
PhD.Faculty Member Nadeem Talib National University Of Modern Languages
Islamabad, Pakistan
PhD.Faculty Member Natalija Shikova International Balkan University, Macedonia
PhD.Faculty Member Nilay Köleoğlu Çanakkale Onsekiz Mart University
PhD.Faculty Member Noyan Aydın Kütahya Dumlupınar University
PhD.Faculty Member Nurcan Süklüm Hitit University
PhD.Faculty Member Nürettin Akçakale Bolu Abant İzzet Baysal University
PhD.Faculty Member Oğuz Kara Düzce University
PhD.Faculty Member Oktay Kızılkaya Ahi Evran University
PhD.Faculty Member Omar Khalid Bhatti Iqra University, Pakistan
PhD.Faculty Member Onur Şaylan Çanakkale Onsekiz Mart University
PhD.Faculty Member Özer Özçelik Kütahya Dumlupınar University
PhD.Faculty Member Özgür Topkaya Çanakkale Onsekiz Mart University
PhD.Faculty Member Özlem Balaban Sakarya University
PhD.Faculty Member Resül Yazıcı Bilecik Şeyh Edebali University
PhD.Faculty Member Rüya Ataklı Yavuz Çanakkale Onsekiz Mart University
PhD.Faculty Member Salman Iqbal University Of Central Punjab, Pakistan
PhD.Faculty Member Satyanarayan Kothe University Of Mumbai, Hindistan
PhD.Faculty Member Seçil Öztürk Çanakkale Onsekiz Mart University
PhD.Faculty Member Sedat Durmuşkaya Sakarya University
PhD.Faculty Member Selim Gündüz Adana Bilim ve Teknoloji University
PhD.Faculty Member Serdar Orhan Sakarya University
PhD.Faculty Member Serdar Orhan Sakarya University
PhD.Faculty Member Sevim Akgül Bayburt University
PhD.Faculty Member Sonyel Oflazoğlu Mustafa Kemal University
PhD.Faculty Member Suhail/Ghouse Dhofar University
PhD.Faculty Member Sultan Salur Sinop Universitesi
PhD.Faculty Member Süreyya Karsu Bolu Abant İzzet Baysal University
PhD.Faculty Member Şaduman Yıldız Bayburt University

The 6th InTraders International Conference on International Trade Proceeding Book 5-9
October 2020 (e-conference) https://www.intraders.org/october
e-ISBN: 978-605-69427-6-1
10
PhD.Faculty Member Şerife Önder Kütahya Dumlupınar University
PhD.Faculty Member Şükrü Cicioğlu Sakarya University
PhD.Faculty Member Şükrü İnan İnönü University
PhD.Faculty Member Tahir Benli Kastamonu University
PhD.Faculty Member Tarık Semiz Bilecik Şeyh Edebali University
PhD.Faculty Member Umar Hayat University Of Swat
PhD.Faculty Member Unzule Kurt Çanakkale Onsekiz Mart Universitesi
PhD.Faculty Member Vesna Stanković Pejnović Institute for Political Studies, Belgrade, Serbia
PhD.Faculty Member Volkan Işık Aksaray University
PhD.Faculty Member Yıldırım Turan Sakarya University
PhD.Faculty Member Yıldırım Yıldırım Düzce University
PhD.Faculty Member Yunus Emre Birol Cumhuriyet University
PhD.Faculty Member Yurdagül Meral İstanbul Medipol University
PhD.Faculty Member Yusuf Gör Çankırı Karatekin University
PhD.Faculty Member Zehra Doğan Çalışkan Bolu Abant İzzet Baysal University
PhD.Faculty Member Türkay Henkoğlu Adnan Menderes University
PhD. Lect. Abdullah Kıray Çanakkale Onsekiz Mart University
PhD. Lect. Aktolkin Abubakirova Ahmet Yesevi Universitesi
PhD. Lect. Ali Çağrı Buran Kütahya Dumlupınar University
PhD. Lect. Biljana Chavkoska International Balkan University, Macedonia
PhD. Lect. Denisa Mamillo European University Of Tirana, Albania
PhD. Lect. Dinuca Elena Claudia Titu Maiorescu University Bucharest, Romania
PhD. Lect. Donat Rexha AAB College, Kosova
PhD. Lect. Emine Balcı Sakarya University
PhD. Lect. Ertila Druga European University Of Tirana, Albania
PhD. Lect. Fatma Uzunses Bilecik Şeyh Edebali University
PhD. Lect. Ferit Karahan Kütahya Dumlupınar University
PhD. Lect. Gökhan Kerse Aksaray University
PhD. Lect. Güngör Hacıoğlu Çanakkale Onsekiz Mart University
PhD. Lect. Kadir Tutkavul Kütahya Dumlupınar University
PhD. Lect. Madalina-Teodora Andrei Spiru Haret University, Bucharest, Romania
PhD. Lect. Muhammet Yunus Şişman Kütahya Dumlupınar University
PhD. Lect. Mükerrem Oral Akdeniz University
PhD. Lect. Rukiye Sönmez Çanakkale Onsekiz Mart University
PhD. Lect. Safiye Süreyya Bengül Kütahya Dumlupınar University

The 6th InTraders International Conference on International Trade Proceeding Book 5-9
October 2020 (e-conference) https://www.intraders.org/october
e-ISBN: 978-605-69427-6-1
11
PhD. Lect. Vildan Saba Aktop Afyon Kocatepe University
Dr.Resch.Asst. Cevat Söylemez Kütahya Dumlupınar University
Dr.Resch.Asst. İnanç Kabasakal Ege University
Dr.Resch.Asst. Nilay Bıçakcıoğlu Dokuz Eylül University

The 6th InTraders International Conference on International Trade Proceeding Book 5-9
October 2020 (e-conference) https://www.intraders.org/october
e-ISBN: 978-605-69427-6-1
12
Statement of Responsibility

The legal and scientific responsibility of the manuscripts belongs to the authors.

The 6th InTraders International Conference on International Trade provides Republic of Turkey,
Council of Higher Education "International Conference" criteria. The 6th InTraders International
Conference on International Trade was held on 5-9 October 2020.

InTraders declare that researchers from Romania, North Macedonia, Egypt, Kazakhstan, Pakistan,
Qatar, India, Indonesia, Philippines, Zambia and Turkey joined, more than half of the studies
presented by researchers were out of Turkey.

The 63 % of studies is presented by foreign authors out of Turkey. In the program, just accepted and
presented studies are mentioned.

The 6th InTraders International Conference on International Trade Proceeding Book 5-9
October 2020 (e-conference) https://www.intraders.org/october
e-ISBN: 978-605-69427-6-1
13
Appreciation

I am gratified to have the honor to put forward the vote of thanks to all the Congressional Coordinators,
Congressional Committees, Writers and Authors who provided the intensive work performnace for the Congress

First of all, i would like to convey my special thanks to the honorable

Keynote Speakers

Aktolkin ABUBAKIROVA, Khoja Ahmet Yassawi Intenational Kazakh-Turkish University, Kazakhstan

ADRIANA SCHIOPOIU BURLEA, University of Craiova, Romania Rashmi GUJRATI, Tecnia lnstitute of
Advanced Studies (TIAS), India

Violeta Madjova, International Balkan University, Republic of North Macedonia Sobia Hassan, Lahore College
for Women University, Lahore, Pakistan

U. C. Jha, Lovely Professional University (LPU), India

The Congress is scheduled for 5 days by using Zoom Live Sessions.

We aim to provide contribution international trade field by our International Spring Conferences,
International Autumn Conferences, Academic Journal, Conference Alerts News and International Market
Research.

There will be special issues in InTraders International Trade Academic Journal from the studies take place in
our conferences.

InTraders conference is international and targets the participants from all over the world and shape the
organization in this direction.

The congress aims to have papers from academicians and private sector managers. The written and presentation
language is English.

Conference main topics; international trade, business, economics and supply chain management.

Special thanks to dear co-editors; Assoc. Prof. Dr. Leena Jenefa, India and Mamoona Rasheed, Pakistan

Thank you for your great work dear friends. Last but not the least, my little motivators Emre and Yunus
ÇAPRAZ, you are great….

In upcoming Sprng 7Th InTraders Conference 24-28 May 2021, a beautiful congress which carries more than
international congress criteria is waiting for all of you.

Wish to meet you all in this new international conferences…

Kürşat ÇAPRAZ
Director of InTraders Academic Platform
www.intraders.org

The 6th InTraders International Conference on International Trade Proceeding Book 5-9
October 2020 (e-conference) https://www.intraders.org/october
e-ISBN: 978-605-69427-6-1
14
Contents

Regultory Board ..................................................................................................................................2

Advisory Board ...................................................................................................................................3

Conference Secretariat .......................................................................................................................4

Scientific Board of InTraders Academic Platform .................................................................................5

Statement of Responsibility .............................................................................................................. 13

Appreciation ..................................................................................................................................... 14

Contents ........................................................................................................................................... 15

Keynote Speakers (Joined) ................................................................................................................ 18

Aktolkin ABUBAKIROVA, Kazakhstan

ADRIANA SCHIOPOIU BURLEA, Romania

Rashmi GUJRATI, India

Violeta Madjova, Republic of North Macedonia

Sobia Hassan, Pakistan

U. C. Jha, India

Conference Program (Joined)............................................................................................................ 19

Presented Studies ............................................................................................................................. 20

The role of Romanian influencers in the strategy to promote tourism in Turkey................................ 28

Maria-Alexandra Călinoiu, Romania

Contemporary Ways Of Teaching Foreign Languages To Future Specialists In The Sphere Of Tourism
(Based On The Content Of Great Silk Road) ....................................................................................... 44

Gulnara RİZAKHOJAYEVA, Kazakhstan

Alyona BALTABAYEVA , Kazakhstan

Aktolkin ABUBAKIROVA3, Kazakhstan

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Solving Housing Problems of University Students with Multi Criteria Decision Making Methods: The
Case of Düzce Province ..................................................................................................................... 53

Hakan Murat ARSLAN, Turkey

Analysis of Green Supply Chain Management Systems Adopted by Indian Retailers .......................... 63

Inderpreet Singh, India

Sonia Gandhi, India

Intercultural Competence as a Key Factor in International Trade ...................................................... 74

Marinică Tiberiu Șchiopu, Romania

Supply Chain Financing Solutions And Their Effect On Small And Medium Enterprises: A Theoretıcal
Perspective ....................................................................................................................................... 84

Ceyda AKTAN, Turkey

Eyyüp Ensari ŞAHİN,Turkey

Turkey's Ecopolitica and Foreign Trade in the COVID 19 Process ..................................................... 105

Asena BOZTAŞ, Turkey

Dilşad TÜRKMENOĞLU KÖSE, Turkey

Relations Between Turkey and The Turkish World in The Globalization Process .............................. 115

Dilşad Türkmenoğlu Köse, Turkey

Asena Boztaş, Turkey

The Impact of Employees’ Emotional Capabilities on Customer Loyalty with the mediating role of
Rapport and Trust: A case of personal fitness industry .................................................................... 123

Mubashar Hassan Zia, Pakistan

Fizza Asif, Pakistan

Ali Haider, Pakistan

Determination of the Most Appropriate Robot Kit Model for Robotics Companies with AHP-TOPSIS
Hybrid Method: An Application ....................................................................................................... 143

Hakan Murat ARSLAN, Turkey

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Game changing role of HRD &Leadership amid and Post COVID -19 ................................................ 154

Hina Zahoor & Nasir Mustafa, Turkey

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Keynote Speakers (Joined)

Aktolkin ABUBAKIROVA, Kazakhstan

Khoja Ahmet Yassawi Intenational Kazakh-Turkish University, Kazakhstan

ADRIANA SCHIOPOIU BURLEA, Romania

University of Craiova, Romania

Rashmi GUJRATI, India

Tecnia lnstitute of Advanced Studies (TIAS), India

Violeta Madjova, Republic of North Macedonia

International Balkan University, Republic of North Macedonia

Sobia Hassan, Pakistan

Lahore College for Women University, Lahore, Pakistan

U. C. Jha, India

Lovely Professional University (LPU), India

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18
Conference Program (Joined)

Monday, 5 October 2020

15:30–16:20 Keynote Speech

16:30–17:30 Abstract No: 10-41-7-19

Tuesday, 6 October 2020

15:30–16:20 Abstract No: 5-8-26-37

16:30–17:30 Abstract No: 6-24-27-43

Wednesday, 7 October 2020

15:30–16:20 Abstract No: 13-20-16-25-38

16:30–17:30 Abstract No: 11-17-42-18

Thursday, 8 October 2020

15:30–16:20 Abstract No: 28-15-33-21-44

16:30–17:30 Abstract No: 32-40-29-22-23

Friday, 9 October 2020

15:30–16:20 Abstract No: 9-12-30-35-45

16:30–17:30 Abstract No: 8-14-31-34-36-39

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19
Presented Studies

Abstract No Author Title University Country

The Ombudsman
Institution in
Romania and
5 Irina-Raluca BADEA Turkey – a Free Researcher Romania
Comparative
Analysis

INSTITUTE OF
IMPACT OF BUSINESS AND
SYED HAMZA
MINIMUM WAGE HEALTH
MINHAJ &
6 ON INDIVIDUAL’s MANAGEMENT Pakistan
ORIYA FATIMA
WELFARE (DUHS)

An Empirical
Study towards
Tecnia Institute of
the Impact of
Advanced Studies,
7 Leena Jenefa COVID 19 in India
Delhi
Tourism Sector

Analysis of Green
Supply Chain
Management Tecnia Institute of
Inderpreet Singh, Systems Adopted Advanced Studies,
8 India
Sonia Gandhi by Indian Delhi
Retailers

The state’s
responsibility to
Faculty of Law,
compensate the
University of
9 Nadia Elalfy victims of the Egypt
Alexandria
demonstrations

Intercultural
Competence as a
Marinică Tiberiu Key Factor in University of
10 Șchiopu International Craiova Romania
Trade

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The role of
climate variability
on suicide rates-
12 Suzan Odabasi A county level Uşak University Turkey
analysis

INVESTIGATING
THE
IMPACT OF
BRAND
IMAGE ON
CONSUMER’S Lahore College for
Sara Mahmood
WILLINGNESS Women
&
13 TO PAY MORE; University, Pakistan
Shaista Jabeen THE MEDIATING Lahore
ROLE OF BRAND
PREFERENCE

The Role of
Equity Market
Volatility due to
the COVID-19
Pandemic in Tokat
Predicting Gaziosmanpaşa
14 Oktay ÖZKAN Exchange Rates: University Turkey
Evidence from the
United States

SUPPLY CHAIN
FINANCING
SOLUTIONS AND
THEIR EFFECT ON University of
SMALL AND Turkish
Ceyda AKTAN, MEDIUM Aeronautical
15 Turkey
Eyyüp Ensari ŞAHİN
ENTERPRISES: A Association, Hitit
THEORETICAL University
PERSPECTIVE

Turkey’s Relations Sakarya University,


Dilşad With The Turkic Sakarya University
TÜRKMENOĞLU World in The of Applied
16 Process Of Sciences, Faculty Turkey
KÖSE, Asena
BOZTAŞ Globalization of Applied Science

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21
Factors Affecting
International
Trade in
Southeastern
Anatolia Region Adıyaman
17 Hakan Uslu of Turkey: An Turkey
University
Econometric
Analysis

The Impact of the


Macroeconomic
Istanbul
Policies on the
Commerce
18 Collins Adu Takyi Economic Growth Turkey
University
in Ghana

The Impact of
Microfinance on
Özcan Öztürk & Small Enterprises Hamad bin Khalifa
19 Qatar
Noureddine Radouai in Morocco University

CONTEMPORARY
WAYS OF
TEACHING
FOREIGN
LANGUAGES TO
GULNARA FUTURE
RİZAKHOJAYEVA, SPECIALISTS IN Khoja Ahmet
ALYONA THE SPHERE OF Yassawi
BALTABAYEVA, TOURISM (BASED Intenational
20 Kazakhstan
AKTOLKIN ON THE Kazakh-Turkish
ABUBAKIROVA CONTENT OF University
GREAT SILK
ROAD)

LIZA ALILI DOES ACCESS TO INTERNATIONAL Republic of


21 SULEJMANI, FINANCE AFFECT BALKAN North
ANGELA ZAFIROVA, SME’S GROWTH? UNIVERSITY, Macedonia,
Daniel Guçe CASE OF THE University of Romania
WESTERN Craiova
BALKANS

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22
Recep Tayyip
Covid-19: Impact Erdogan
22 Hayri UYGUN Turkey
on Tourism University

Application of K-
MEANS, X-
MEANS and EM
ALGORTS IN
RESEARCH
23 Gülizar PAT PROJECTS WORK Sakarya University Turkey
AREAS

THE
EFFECTIVENESS
OF
A. ANANDA KUMAR ADVERTISMENT
KALONGA ON SALES
PROMOTION DMI – ST. EUGENE
24 KAMWALE,FREDRICK Zambia
(A CASE STUDY UNIVERSITY
MUSWEU
ON SHOPRITE,
LUSAKA)

FACTORS
AFFECTING THE
GROWTH AND
DEVELOPMENT
OF TOURISM IN
ZAMBIA (WITH A
A. ANANDA KUMAR SPECIAL DMI – ST. EUGENE
25 Zambia
REFERENCES TO UNIVERSITY
J. MEXON
CHIBOMBO &
LUSAKA)

Solving Housing Düzce University Turkey


Problems of
University
Students with
Multi Criteria
26 H.Murat ARSLAN
Decision Making
Methods: The
Case of Düzce
Province

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The dynamic
nonlinear impact
of CDS, exchange
rate, and VIX
index on Turkish
27 Ferhat Çıtak stock market: new Hitit Üniversitesi Turkey
insights from
QARDL approach

A Review of the
Energy Kütahya
Muhammet Yunus
28 Consumption in Turkey
Şişman Dumlupınar
Turkey University

How does Crime


Rates vary: A
spatial analysis of
29 Mohammad Rafay the 81 cities of Sakarya University Turkey
Turkey

COVID-19, Face
Mask and
Ahmet Haklı, İstanbul Medipol
30 Breathing Turkey
Yurdagül Meral University
Apparatus in
Turkey
HOW ECO–
EFFICIENCY
IMPROVES FIRM
FINANCIAL Universitas
Vera Apri Dina Safitri PERFORMACE? AN
Teknokrat
31 & Dhiona Ayu Nan EMPIRICAL EVIDENCE Indonesia
FROM INDONESIAN Indonesia
SOEs

Next Generation
Social Business: A Holy Angel
Mia Torres-Dela System Of University,
32 Cruz Sustainability Angeles City, Philippines
Innovation Philippines

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An empirical
study towards
employee
satisfaction and Madras Christian
33 Subanya Sarah Retention with India
College, Chennai
special reference
towards IT sector

IMPACT OF
DEMAND AND
SUPPLY WITH
SPECIAL
REFERENCE St.Mary’s College
TOWARDS (Autonomous) –
34 DR.D.AMUTHA GARMENTS India
Thoothukudi,Tamil
DURING Nadu
LOCKDOWN
PERIOD

A
Conceptualization
of a Customer- DMI Group of
Preference and Institution,
Dr.Ignatius Perception Chennai-India,
A.Herman, Dr.Leena towards Value Tecnia Institute of
35 Jenefa Added Courses Advance Studies, India
Through Online Delhi –India
Mode

Sakarya University
Turkey’s of Applied
Asena BOZTAŞ
Ecopolitica and Sciences, Faculty
Dilşad
Foreign Trade in of Applied
38 TÜRKMENOĞLU Turkey
the COVID 19 Sciences, Sakarya
KÖSE
Process University

Game changing
Hina Zahoor, Nasir role of HRD Amid Istanbul Gelisim
39 Mustafa and Post COVID - University Turkey
19

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COVID-19: The Hailey College of
Commerce,
Pandemic’s
Shaista Jabeen, University of the
Impact on
40 Muhammad Farhan Punjab, Askari Pakistan
Economy and
Bank Limited
Stock Markets

The role of
Romanian
influencers in the
Maria-Alexandra strategy for University of
41 Romania
Călinoiu promoting Craiova
tourism to Turkey

Determination of
the Most
Appropriate
Robot Kit Model
for Robotics
Companies with
42 H.Murat ARSLAN AHP-TOPSIS Düzce University Turkey
Hybrid Method:
An Application

The effect of
government
policy on demand
for Higher Abdul Wali Khan
43 Noor Jehan Pakistan
Education: case of University Mardan
Covid-19

The Impact of Riphah


Employees’ International
Mubashar Hassan Emotional University,
Zia, Fizza Asif, Ali Capabilities on Islamabad
Haider Customer Loyalty Pakistan,
44 with the International
mediating role of Islamic University,
Pakistan
Rapport and Islamabad
Trust: A case of Pakistan
personal fitness
industry

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Foreign Financial
Inflows and Istanbul
Exchange Rate Commerce
45 Ismail Ahmed Nur Turkey
Volatility in University
Somalia

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The role of Romanian influencers in the strategy to promote tourism in Turkey

Maria-Alexandra Călinoiu, Romania

University of Craiova, Romania

Abstract

The objective of this article is to analyse the travel trends of Romanians in terms of
optimizing the choice of a destination based on information received from those who have
already been to that destination and generating solutions to increase tourism in Turkey by
integrating Romanian influencers in the destinations' promotion strategy. The research
methodology consists in the qualitative analysis of influences based on the interpretation of
the results of a questionnaire applied to 222 respondents. The conclusion of the research is
that the activity of Romanian influencers should be integrated into the Turkish tourism
promotion strategy due to the large number of travellers who rely on such information
generated by online content creators.

JEL Code: E71


Keywords: Trade, torusim, Turkey

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Introduction

Turkey is Romania's largest trading partner, after the European Union, economic and trade
cooperation being the foundation of the relations between these two countries. Over 15,000
Turkish companies operate on the Romanian market in areas such as trade, industry, real
estate, services, construction, banking, production, food and transportation. Due to the intense
economic and commercial exchanges, the number of flights to Turkey increased to 50 per
week, which resulted in increased promotion by Romanian bloggers of tourist destinations in
Turkey.

Facilitated access to Turkey has led to an increase in the number of flights, the offers airlines
consistently provide, the advantageous tourist packages created by travel agencies, as well as
the promotion on various travel sites of destinations such as Antalya, Istanbul, Cappadocia,
Pamukkale, Ankara, Izmir, Rize and others, through the desire to discover these places, to
experience their impressive potential, to test unique services and activities such as hot air
ballooning in Cappadocia, hot springs and limestone terraces in Pamukkale, The Blue Mosque
in Istanbul, the Bosphorus Strait, the cradle of civilization at the end of the world in Rize.

Literature Review

By observing the way people react in social situations, the theorist Brandura emphasizes that
"in the social learning system, new patterns of behaviour can be acquired, through direct
experience or by observing the behaviours of others." (Brandura, 1971, p.3) Based on
informative feedback, consumers develop thoughts or hypotheses about the types of
behaviour with the highest chance of success. These assumptions serve as guides for the
future actions. (Brandura, 1971, p.3) In other words, people are more likely to adopt the
behaviours exhibited by influencers. (Forbes, 2016)

Finding strong and compelling influencers underlies the success of viral marketing or WOM
marketing (Kim and Han, 2009). Trust also plays an important role in influencing consumer
behaviour as there are links in both directions, on the one hand there are the producers, sellers
and suppliers (Boughton et al., 1996) and on the other hand the consumer who does not want
unpleasant surprises upon receipt of a product or service (Ganesan, 1994). Purchasing
behaviour is thus influenced by several factors, including online advertising (Manchanda et
al., 2006; Ha, 2008). Users exposed to banners are usually more likely to buy, which means
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increased purchase intention followed by repeated buying probabilities. Expanding consumer
behaviour has shown that consumers are effectively integrating real life into their online
behaviour and vice versa. Yee and Bailenson (2007) refer to this as the Proteus effect - similar
behavioural patterns in both virtual and real-life settings. Such studies indicate that both
environments are closely linked to the consumer's mind. Thus, online brand exposure will
have a similar effect in the spoken word, and vice versa, because consumers create a virtual
representation of it through the use of the Internet (Schau and Gilly, 2003). This idea leads to
the reasoning that the influence that is realized online affects the intention to purchase in real
life, as well as the perception of the products and services.

People don't want to be lied to, especially as consumers - no one wants to lose money by
buying a malfunctioning product or an unsatisfactory service on account of misleading
advertising. Thus, the purchase intention was approached by different researchers through
different contexts. Akar and Topçu (2011) came to the following conclusion: the higher the
consumer confidence in an online product or service, the higher the consumer's purchase
intention. It has been shown that trust has a considerable effect on the purchase intention (Li
et al., 2007).

In today's WOM marketing, influencers play a very important role and, at the same time, their
recognition grows rapidly (Scoble and Israel, 2006) due to the fact that they provide
information that is synthesized in various forms and functionalities (Akritidis et al., 2011).
The main factors that define the consumer's tendency to be influenced by a certain factor
largely concern the correct information, received at the right time, in the right place and
coming from the right person (Wu, 2012).

Influencers spread information through various social media channels, such as blogs and
social networks, they share stories and images, they tell their experiences, express their
opinions on many topics, services and products, and are a portrayal of the very important
phenomenon of influence (Alsulaiman et al., 2015; Alhidari et al., 2015).

In contrast to celebrities who are usually public figures with a large number of fans,
influencers create advertorials on social media or blogs. They either receive money in
exchange for writing or promoting products and/or services, or they work in barter and are
rewarded with products or services. Bloggers have an audience that is interested in specific

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topics for discussion, and the popularity of online blogs began to be recognized by marketers
after it was found that 77% of all internet users read blogs (McGrail, 2013). Consequently,
marketers have begun to use bloggers as supporters, as these may be perceived as more
credible than celebrities (Mendoza, 2010). Therefore, connections made by the Internet mean
that brands who want to be perceived as authentic will focus their marketing efforts on
seeding information or products with influencers, based on their ability to give consumers the
feeling of "people like me". (Solis, 2016, p.1). This means that brands need to look carefully
for influencers who generate real interest, and these influencers may be different from
traditional celebrities and paid collaborations.

In addition, in the online environment, consumers play a significant role through their
interactions, which influences how trust is generated and, consequently, leads to the purchase
intention (Lee et al., 2014). Meanwhile, consumers' purchase decision is influenced by
electronic WOM, which in turn affects the purchase intention in two positive or negative ways
(Sa'ait et al., 2016). It was also noted that the attitude of the brand has a positive impact on the
intention to purchase, for example when the consumer expresses the desire to purchase a
particular brand, this intention is increased when the consumer has a positive attitude towards
it (Butt, 2014). Also, brand capital contributes to the purchase intention of customers, and
brand loyalty has a direct positive role in influencing both brand capital and purchase
intention (Porral et al., 2015).

Social media has become a source for communicating marketing messages globally, making
organizations, researchers and marketers more interested in the value of advertising, as well as
in the possibility of influencing multiple platforms (Saxena and Khanna, 2013). Therefore,
influencer marketing involves activities that relate to identifying and building relationships
with people who have the ability to influence potential buyers (Wong, 2014).

The role of influencers in promoting tourism

Social media is increasingly influencing the purchase decisions of users around the world who
focus mainly on the recommendations of influencers before buying a plane ticket, an
accommodation service or a trip.

The fact that influencers invest time and resources in personal brand development causes
consumers to perceive them as serious, passionate and dedicated in their online activity, thus
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gaining the status of connoisseurs, professionals whose advice and recommendations are
worth listening to and following, in this regard guiding the consumer to the things they
believe in, things they support, creating awareness and changing travel decisions.

The travel area is quite sensitive as a successful holiday requires research, rigorous planning
as well as taking into account the advice and impressions of those who have been there
before. Being familiar with a destination before visiting it is a plus because it allows one to
see more places in a fairly short amount of time, it allows carrying out unique activities and
the experience itself is much more pleasant than when one does not know the tourist potential
of the area. Weather is an important indicator in choosing dates and destinations, guide prices
dictate the budget and thus influence the choice of one destination over another – a much less
expensive one. Whether it is profitable or not to invest time and resources to get to a certain
area, the state of the road, the dangers it entails - this is all vital information that can be
learned from people who have already been there and hold such details.

The easiest way to convey this information to the general public is through articles on blogs
or travel sites, as well as travel reviews in various specialized magazines.

Video blogs that faithfully reproduce the reality of a city or a place are much more relevant.
They are presented in the form of travel vlogs and posted on the YouTube channel of the
travel aficionados.

At the same time, Instagram plays an important role in promoting destinations, precise places
and experiences through travel photos that serve as inspiration in including an activity or a
place in the plan of exploring a destination.

Research Objectives

In order to observe the impact that the activity of influencers has on the travel decisions of
Romanians, we conducted a survey based on a questionnaire applied to a group of 222
respondents, which was the support of the qualitative research. The survey was conducted
between 25-27.01.2020 in the online environment, and the data analysis was made with
Microsoft Office Excel.

Research objectives
● travel frequency

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● factors that influence the choice of a holiday destination
● the impact of media content on choosing a destination
● the degree of visitation and the degree of the desire to visit Turkey
● the impact of airline offers
● control over planning
● the factors that determine Turkey to be chosen as a holiday destination by Romanians.

Research results

The profile of the respondents is shown in Table 1.1.

Table 1.1. Profile of respondents

Variable Classification of the Frequency Total share


variable

Gender Female 178 80.1%

Male 44 19.9%

Age 18-24 79 35.6%

25-36 years old 92 41.4%

over 36 years old 51 23%

Out of the group of 222 people, 178 are female, representing 80.1% and 44 are male, that is
19.9%.

Most are between 25 and 36 years old, representing 41.4% (92 respondents), followed by
those aged 18 to 24 with a share of 35.6% (79 people) and only 23% over 36 years (51
people).

Out of the 222 respondents, 212 individuals representing 95.5% travel for personal purposes -
as follows: 14% every month (31 people), 66.2% 2-3 times a year (147 people), 15.3% only
once a year (34 people) - and the remaining 4.5% do not travel (10 people).

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Figure 1.1. Travel frequency

Out of the 212 people traveling, 21 said they most often travel alone (10%), 86 with their
partner (40.5%), 60 travel with friends (28.3%) and 45 people travel with their family (21.2%)
resulting in the predominance of travel couples.

Figure 1.2. The type of trip


Only 17.5% of the respondents turn to a travel agency to purchase a vacation (37 people), the
remaining 82.5% deal with vacation planning on their own, from purchasing airline tickets to
hotel reservations and optional trips.

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Figure 1.3. Planning a vacation

Regarding the choice of the holiday destination, an important role is played by the articles on
the blogs of the travellers who have already been to that destination, these underlie the option
for 90 people (42.5%), followed by promotions on airline tickets, 86 people (40.5%) say they
arrive at a destination because of having found inexpensive plane tickets to fly there. The
recommendations of friends who have already been to that destination are not ignored either,
because they decide the destination for 75 people (35.4%). Instagram photos are the basis for
choosing a destination in the case of 48 people (22.6%), and travel vlogs for 34 people (16%),
while 5 people (2.3%) are neither influenced by offers, nor by other people.

Figure 1.4. Motivation for choosing a holiday destination

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Regarding information about a new place, 94.8% of the respondents who travel (201 people)
research tourist attractions, prices, restaurants and other activities before reaching their
destination while 5.2% (11 people) orient themselves on the spot.

Figure 1.5. Degree of research

In terms of sources, 81.2% are informed from blogs and social media (173 people), 28.6%
from friends, relatives, acquaintances, in general, people they trust (61 people), 21.6% from
agency websites (46 people).

Figure 1.6. Research sources

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In terms of control and travel details, 92% of travellers make their itinerary themselves (195
persons), 5.6% have someone in the group dealing with the itinerary (12 persons), and 2.4%
travel in an organized group with a pre-arranged itinerary (5 persons).

Figure 1.7. Control and travel details


In terms of the potential of a destination, 65% of travellers choose a destination for the beach
(139 persons), 58.4% for the architecture (125 persons), 58.4% for the culture (125 persons),
52.3% for the history (112 persons), 38.3% for the gastronomy (82 persons) and only 28% for
the festivals and parties (60 persons).

Figure 1.8. The tourist potential of a destination


As activities, 63.6% of travellers visit museums and other sights, 35.5% relax at the beach and
only 0.9% choose ultra all inclusive and only stay at the hotel.

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Figure 1.9. Holiday activities

From a safety point of view, 84% (178 people) inquire whether the area they are travelling to
is dangerous or whether they need to get certain vaccines, while the remaining 16% (34
people) do not.

Out of the 212 respondents travelling, 98 (46.7%) get a travel insurance every time they
travel, 59 (28.1%) only when travelling outside Europe, and 55 (26.5%) never do.

Out of the 212 respondents travelling, 135 (63.7%) have already travelled to Turkey so far,
the remaining 77 (36.3%) have not. Out of the former 135, 67 (49%) chose Turkey because of
the culture, gastronomy and tourism potential of the main cities, 23 (17%) went there
following recommendations from friends, 22 (16%) thanks to tourist packages sold by
agencies, 13 (9.4%) as a result of articles read on travel blogs, 9 (6.5%) due to flight offers, 3
(2.1%) because they were attracted by the fact that Turkey is situated on two continents.

Figure 1.10. Turkey's degree of visitation


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Figure 1.11. Reasons for choosing Turkey

Out of the 212 travelling respondents, 116 representing 54% plan to visit Turkey next year,
the remaining 96 (46%) do not.

Figure 1.12. Intention to visit Turkey next year

The fact that Turkey is not in the European Union is not an impediment to a visit for 90.5% of
travelling respondents (192 persons), however, for 9.5% (20 people) it is.

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Figure 1.13. Impediments to visit Turkey

The top passenger preferences include Istanbul (45.7%), Cappadocia (32.2%), Antalya
(10.6%), Bodrum (3.5%), Pamukkale (3%), Ankara (3%), Izmir (1%), Rize (1%).

Figure 1.14. Cities at the top of travellers' preferences

Discussions

In terms of travel frequency, 66.2% of respondents said that they travel 2-3 times a year and
couple travel is significant, with a percentage of 40.6%.

The study revealed that 82.5% of respondents do not turn to a travel agency and prefer to take
care of all travel related aspects on their own, with an important role in this regard being

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played by travel content creators (bloggers, vloggers, Instagrammers), as well as travel groups
that become sources of information for travellers. Especially since 94.8% research before
leaving for a destination with regard to sights, prices, restaurants and other activities and 92%
make their own itinerary.

In this respect, 26.6% of the respondents said they choose a destination because they read
about it on a blog and it caught their attention, 81.2% are informed from blogs and social
media, 25.4% choose the destination based on airline offers, 65% choose a destination for the
beach, 63.6% visit the sights.

In terms of safety, 84% of the respondents said they inquire whether the area where they are
going to travel is dangerous or requires certain vaccines, and 46.7% get travel insurance all
the time.

Regarding the travels to Turkey, 63.7% of respondents have already visited Turkey, and 49%
have chosen it as their travel destination mainly due to culture, gastronomy and tourism
potential. 54.7% plan to visit Turkey next year.

In the top preferences is Istanbul 45.7%, followed by Cappadocia - 32.2%.

Conclusions

Given that the majority of the respondents prefer to research about a destination on their own
before travelling and to deal with all the transport and accommodation details without calling
a travel agency, based on the information found on the blogs of those who have already been
there and on the recommendation from people they know, the focus should be on increasing
quality content about destinations, by promoting and encouraging the work of influencers, be
it video, text or photos, facilitating access to new destinations and activities.

In order to attract as many visitors to Turkey as possible, Romanian influencers can be


integrated into the destination promotion strategy, by organizing themed tours and guided
tours for them to increase the number of materials about Turkey, materials that - according to
the study that was carried out - are the basis for optimizing the decision to travel to a
particular destination. The more a destination is promoted, the more likely people are to want
to get to that destination and even buy a holiday there.

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Contemporary Ways of Teaching Foreign Languages To Future Specialists In The
Sphere Of Tourism (Based On The Content Of Great Silk Road)

Gulnara RİZAKHOJAYEVA1, Kazakhstan

Alyona BALTABAYEVA2 , Kazakhstan

Aktolkin ABUBAKIROVA3, Kazakhstan

Abstract

Studies show that the ideas about professional communication activities of specialists in the
field of tourism are inextricably linked precisely with foreign language training. The process
of foreign language training of tourism specialists should be a complex, holistic cycle of
classes aimed at developing foreign language communication skills among tourism
specialists. The article presents some methods of teaching a foreign language using the
thematic perspective "The Great Silk Road".

JEL Code: Z32


Keywords: method, training, foreign language, CLIL, tourism

1
PhD, Assist.Professor Kazakhstan, Turkestan, B.Sattarkhanov Ave num.29, post.index 161200, Khoja Ahmet
Yassawi Intenational Kazakh-Turkish University gulnara.rizahodjaeva@ayu.edu.kz

2
PhDs, Associated Professor Kazakhstan, Turkestan, B.Sattarkhanov Ave num.29, post.index 161200, Khoja
Ahmet Yassawi Intenational Kazakh-Turkish University baltabaeva_alyon@mail.ru

3
PhD, Assist.Professor Kazakhstan, Turkestan, B.Sattarkhanov Ave num.29, post.index 161200, Khoja Ahmet
Yassawi Intenational Kazakh-Turkish University aktolkin.abubakirova@ayu.edu.kz

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Introduction
Nowadays there is an issue of how to begin to be a adapted person in intercultural and
international section, and earning a foreign language is one of rebuttal justification which
builds up more chances to evolve professional skills. Relative to this condition we look
toward various modern educating technologies in teaching foreign languages. Modern
methods in teaching foreign languages could be susceptible to multilingual educational
program for «Tourism» speciality. Some effective modern methods and techniques are
recited below:
- Content and Language Integrated Learning (CLIL);
- Blended Learning;
- Collaborative Project-Based Learning;
- Using Smartphones during the lesson;
- Post Method Era;
- Guided Discovery
- Critical Thinking Strategies;
- PPP (Presentation, Practice, Production);
-Eclectic Method.
The first mentioned method is CLIL is acronym term for content and language
integrated learning. D. Marsh and A.Malliers are first users of the term in 1994 , as a method
of teaching non-lingual courses in foreign languages. The CLIL as an approach which is
composed different forms of utilizing foreign language as a method of functioning its study,
contributes persuasive opportunity for learners to have recourse to their current language
skills in habitude at any case, beyond remaining applicable stage in the future. The method
builds up associative aspect for learning English language. By doing that English assumes
form of subject which in conjunction with affiliated with other subjects in school programs.
Adjusting the learning program in CLIL system requires some main considerable tips which
construct (see table 1) the “4C”. The “4C” means “Content”, “Communication”, “Cognition”
and “Culture”[Stratt, M. (2017)]

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Table-1. 4 C framework of CLIL method ( according to M.Spratt)

№ 4C Explanation
1 The procedure of attaining knowledge and skills will be in the area
of the subject is being taught. CLIL creates better condition for
evolving multidisciplinary connection. Students learn the gist of
Content History, Geography, Art and other non-lingual subjects with the
help of foreign language.
2 Learners attain the usage of foreign language in beneficial to be
aware of various packing of disciplines. The second language
acquisition emerge as contrivance for communication, not just
being a chief goal itself. An essential objective of CLIL is to
depreciate teachers’ speech duration and enhance students’ talking
stretch. By doing that students will have capability to practice more
a foreign language by means of communication in classroom.
Teachers and classmates are plays a role of helpers.
Communication “Brainstorming” is one of the best techniques of boosting your
ideas. It can help teachers and learners mostly at the beginning of
the lesson. Learners demonstrate their viewpoints and have a short
discussion with a whole group about investigated problems.
Speaking skill will arouse and students will affirm that their
cognitive activeness is encouraged .
3 Developing mental activities is sustained procedure in purchasing a
foreign language. Learners required to occupy grasping what is
intended to be taught from teaching process. Because each lesson
is constructed to reach that goal. By apprehending the chief goal
students automatically start work out the content and build self-
orientation for their course study. There are some important tasks to
do for self-contented students to follow:
Cognition
- critical reading;
- critical writing;
- analytical reading;
- analytical writing;
- articulating the main gist of the content;
- comparing details of the content;
- finding solutions;
- regulating correlations.
4 Culture Cultural knowledge indicates a distinct culture. It can comprise
some explications which are cultural dimensions. Cultural
awareness contains some aspects such as:
- understanding native language and foreign languages;
- apprehending own and foreign cultures;
- prompting self area and duty in it;
- initiating constructive interrelations with differen culture
members.
Being cultural aspects of knowledge these points are also
considered as main parts of language teaching methods like CLIL.

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Particularizing the CLIL methods draw to a close that language turns out to be an implement
for teaching the content of the course of study. For that reason chief emphasize is on the text
assembled and used form of expressions in a particular text. The teaching program is unified
with English language teaching, and it leads to make use of target language in exploring the
idea of subject matter [Moore, P. (2011)]. It causes the expansion of stimulation in practicing
the foreign language in the background of specific topic. It is significance to determine
studying materials cautiously. Because it is one of the rules of CLIL method. Course books
required to include grammatical and lexical structure and four principal communicative skills
such as reading, speaking, listening and writing. Exercise structures should start from
undemanding tasks and lead to complicated drills. Chosen content must be able to be
understood and arguable . Before-reading, while-reading, and post reading also listening
assignments incorporate discrete, mental active and imaginative. Those are composing short
essays, comparison, complementation, inquiries, sharing ideas and opinions about a particular
topic, prepare presentations by own or with groups.

There are some important compulsion points to consider while making drilling tasks:

- text based tasks should relate to constitution of academic course in order to exert
influence of learners to get meaning clearly, though they can regulate, compare notes, and
guess the main gist of the given text;

- exercises should activate students’ independent and inventive abilities, communicative


skills for using oral and written form of a foreign language;

- tasks should teach students to correspond the plan of action in linguistics and clarify
communicative issues through drill activities.

Contentment significance is more surpassing than teaching the language itself. Language
teaching and content instruction are closely related to each other. Actually a foreign language
is taught in order to educate learners to be able to use the language in communicative
situations of future specialists in the sphere of tourism. That is why the principal emphasize in
on usage of target language and the content of the whole course. Linguists like Lisbeth,
M.Brevik and E.Moe are done their project works in the sphere of using CLIL method in
teaching English [Brevik, M., Moe, E. (2012)]. They did an experimentation in teaching
scientific disciplines like Mathematics, Physics and Biology through English language. The
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project duration is from 2007 to 2009 and it was initiated by the Norwegian Centre for
Foreign Languages in Education. Linguists introduced schoolchildren with recognition of
CLIL in four main stages (table 2):

Table 2 - 4 main stages of CLIL (according to D.Puffer)

Stages Names of the stages Activities done in each stage


1 Acceptance Learners are received learning English as a new target.
2 Enthusiasm Learners become to be enthusiastic about learning a discipline’s
content together with foreign language. In most cases pupils
confused English words with Norwegian translations. They do it
in order to refrain from communicational disintegration, that can
be perceived as they are capable of using a target language to
convey their bilingual discourse. Learners tried to use Venn
diagram and other influential techniques to compare and
distinctions of topics, time lines for showing chronologic order on
the lesson those helped them to recognize words.
3 Skepticism Making mistakes and some errors made them to be unsure about
using English fluently.

4 Satisfaction After practicing regularly and gaining more knowledge in each


field, language and specific disciplinary, made them feel
satisfaction of forward learning the subject together with
language.

Another linguists D.Puffer who had research on CLIL implementation resulted that
communicative skills are firmly assumed by the CLIL method. Puffer stated about existence
of achieved aims concerning with students:

- it rises learners stimulation to learn foreign languages;

- it teaches students to use a target language frankly in solving their controversial


situations;

- to evolve worldview and knowledge of foreign cultures;

- it intensifies communicative and linguistic competence through the usage of a foreign


language in instinctive and contemporary way [Dalton-Puffer, C.(2008)].

Another recent effective methods of teaching English is Blended learning. It is a teaching


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method which collaborates traditional classroom schooling with e-learning activities.
J.Cenoz, Nunan and many other linguists consider this method more effective and did many
research works on this area. They explained the whole process of teaching in Blended
learning technology. By their explanation the teacher conducts the content of the disciplinary
by acceptable group webbing, gives an explanation of the subject by sending before prepared
presentations, visual aids, and delivers it with the participating group in online networks
[Singh, H. (2003)]. Students are demanded to look through and get ready for current theme
outside the classroom. And when they have lessons on classrooms they carry out different
activities concerning with the theme, and tasks which teachers plan. Online provided lectures
and student’s active works during the lesson help teachers’ to save more time and do more
essential extra tasks which supplies learner’s demands.

Here, we want to give examples of using CLIL method (on the content of Great Silk
Road). The example is lies on the practice of using this method in the process of preparation
of future specialists in the sphere of tourism in Khoja Akhmet Yassawi International Kazakh-
Turkish University.

Theme: The Great Silk Road - a complex temporal - spatial historical


phenomenon.

1. The Great Silk Road - cultural - economic bridge between East and West.

2. The routes of the Great Silk Road.

3. Sources and literature.

Activities

Discuss the questions below:

What kind of changes occurred after Great Silk Road in each sphere of life?

The role of China in establishing Great Silk Road.

Are there any influences of Silk Road to current economical status of China?

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1. Complete the table.

№ of people
Name Why is it mentioned ?
Alexander
1 of Macedon The tremendous historical significance of the
campaigns of Alexander the Great and the Seleucids
lies mainly in the active penetration of Western culture
into Central Asia.

2. What these numbers mean ?

1877

X century BC - I century AD

the V-VI centuries

the II-I centuries BC

I-VIII centuries

3. Write your ideas. (Imagine)

If there was no Silk Road ….

4. Talk about famous historical architectures in Europe, Egypt, Persia, Arabia, India
which influenced by Silk Road.

At the conclusion, it should be noted that analysis on teaching foreign language and separate
methods used for that direction resulted that the principal aim of foreign language teaching for

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future specialists in the sphere of tourism is to build up communicative skills like speaking
and ability to share their ideas in student’s attained knowledge and capabilities. Whole
training course of educating in a foreign language is requires more challenge and regular
practice in order to lead to the level of globalization. Teaching English in multilingual
educational system creates more opportunities for future specialists in the sphere of tourism to
enter global project works, to develop foreign partnership, ability to use larger foreign
informational sources. In order to assume form of consistent learning style the future
specialists in the sphere of tourism should be supplied highly qualified knowledge stock.
Teaching materials should motivate future specialists in the sphere of tourism on their further
education not just being effective. Modern methods and techniques are various that they can
make each lesson differ from each other. Teacher is one who can use those all and manages
the appropriate to each topic and creates positive results. That is why being a teacher means to
correlate the specific requirements.

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References
Brevik, M., Moe, E. (2012). Effects of CLIL teaching on language outcomes. Collaboration in
language testing and assessment, 26, 213-227.
Dalton-Puffer, C.(2008). Outcomes and processes in Content and Language Integrated
Learning (CLIL): Current research from Europe. In W.Delanoy and L.Volkman (eds.) Future
perspectives for English language teaching . 139-158.
Moore, P. (2011). Collaborative interaction in turn-taking: a comparative study of European
bilingual (CLIL) and mainstream (MS) foreign language learning in early secondary
education. International Journal of Education and Bilingualism, 1-19.
Singh, H. (2003). Building effective blended learning programs. Educational Technology-
Saddle Brook Then Englewood Cliffs NJ. 43(6), 51-54.
Stratt, M. (2017). CLIL Teachers and their Language. Research Papers in Language Teaching
and Learning, 8(1).

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Solving Housing Problems of University Students with Multi Criteria Decision Making
Methods: The Case of Düzce Province

Hakan Murat ARSLAN, Turkey

Düzce University

Abstract

Recent studies on education problems have shown that; Accommodation is the most basic
need especially for undergraduate and graduate students to survive and to maintain a certain
standard. Thus, students can be protected from external factors and possible dangers.
However, neither students nor interested authorities use multi criteria decision making
methods in this decision problem. Whereas, it has become necessary to use scientific methods
in such decision problems where there are more than one criteria and alternative.

In this direction, the main purpose of the study is to help students who want to solve the
housing problem in Düzce with a correct and appropriate decision. In the analysis of the
study, criteria such as rental price distance to school and number of rooms which are effective
in the need for housing, were used. Relevant alternatives were evaluated separately using the
Analytical Hierarchy Process and TOPSIS methods within the framework of the specified
criteria.

As a result of the conducted decision analysis; It has been concluded that it is appropriate for
the students who want to solve the housing problem in Düzce province with optimum benefit
to stay at the KYK (Credit and Dormitories Institution). The results of the study were shared
with some students who had housing problems. In future studies, Decision Making Methods
under Uncertainty can be used in the optimum solution of students' housing problems.

Keywords: Decision Making Methods, AHP and TOPSIS Methods, Housing Problems
JEL Codes: M11, C02, C51, C61

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Introduction

Housing has become one of the most important problems for university students. When the
relevant literature was examined, it was seen that there were almost no studies on this subject.
In this study, it is aimed to show that the accommodation problem of university students can
be solved with AHP and TOPSIS methods, which are the multi-criteria decision making
(MCDM) techniques.

The third part of the study includes the method, and the fourth part includes the analyzes
performed with AHP and TOPSIS methods. In the fifth and last part, the results of the studies
were evaluated.

Litreture Rewiev

AHP Method and Related Studies

AHP (Analytic Hierarchy Process) Method: Basically, this method approaches complexity
systematically, helps decision makers in calculations and grading processes and is frequently
used in many fields. In addition, it has advantages in that the results are formed to the
expected extent and in line with the manager's demands (Saaty, 1999). Solution steps are
given below in order;

1- Calculation of Weights of Criteria

2- Calculation of Consistency Index

3- Evaluation of Alternatives According to the Criteria

4- Multiplying Decision Matrix by Weights

5- Ranking Alternatives

Studies with AHP Method

Çalık (2018) wanted to raise awareness about businesses that pay attention to green
production in their selection of suppliers and make this a production policy. However, studies
have examined that this element has been ignored. It analyzed its model by creating criteria
specific to the solution of green supplier selection problems. Analyzes were carried out using

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Fuzzy Analytic Hierarchy Process (FAHP) and Fuzzy Multi-Purpose Linear Programming
(FMPLP) methods.

Aydın & Eren (2018), in the study on the defense industry sector, provide a detailed
assessment of supplier selection and ordering features. Analyzes were carried out separately
using Fuzzy AHP and Goal Programming Methods. The study; the criteria consisting of
quality, cost, manpower, lead time and technology were evaluated with the AHP Method.
Alternatives are ranked according to their priorities with Goal Programming.

Ulutaşı & Çelik (2019) used MCDM methods in the problem of choosing the most
appropriate leverage needed by a clothing store. First of all, criteria were determined and their
weights were determined with AHP Method. These criteria are; price, lifting capacity, ease of
finding spare parts, warranty period, brand reliability and fork length. Alternatives are listed
according to their priorities using the EDAS method. Among the six alternatives determined,
the most suitable one has been evaluated as "Leverage 3".

Gül & Eren (2017) developed a multi-criteria optimization approach by combining an


Analytical Hierarchy Process (AHP) and a Goal Programming (HP) model for warehouse
location selection process analysis in a public sector.

Balo & Şağbanşua (2016), made evaluations by using the AHP Method to determine the most
suitable solar energy panel. AHP Method has also been used in the selection of safety
equipment of industrial machines (Caputo et al., 2013).

TOPSIS Method and Related Studies

In TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) method, the main
purpose is to determine the most suitable alternative; The logic of being the shortest distance
from the ideal solution and the furthest distance to the undesirable solution is used (Hwang
and Yoon 1981). TOPSIS Method is preferred because of its applicability and easy processing
steps. In addition, it can be applied in many different areas because it allows the criterion
weights to be taken into account in the evaluation of alternatives (Çakır and Perçin 2013).
Analysis steps are as follows;

1- Creating the Decision Matrix

2- Creating Standard Decision Matrix (R)


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3- Creation of Weighted Standard Decision Matrix (V)

4- Finding Ideal Positive and Negative Values

5- Calculation of Discrimination Measures

6- Ranking of Alternatives

Studies with TOPSIS Method

Supçiller & Deligöz (2018), in the study MCDM methods were used to determine the most suitable
yarn supplier of a fabric manufacturing company operating in Denizli. In the study, primarily the
problem and its purpose were clearly stated. Then, the criteria were determined by considering the
decision makers and the literature. In order to rank the alternatives, Decision Making Methods such as
AHP, TOPSIS, VIKOR, SAW, GRAY RELATIONAL ANALYSIS, MOORA, ELECTRE II, M-
TOPSIS were applied separately and alternative suppliers were listed in their priorities.

Gençer &Selçuk (2019), accepted the problem of choosing the most suitable facility location for a
newly opened dealer for a province in the Marmara region as a decision problem. The weights of the
criteria created together with the decision makers and authorities were obtained by AHP Method. The
lands to be invested are considered as alternatives. The ranking of the alternatives was done using the
TOPSIS Method.

In Çizmecioğlu (2019) study, the problem of choosing the most suitable sustainable supplier for a
company that produces aluminum profiles and composite panels was discussed. Multi-criteria decision
making methods were used in the study. The determined criteria were divided into groups and
evaluated with the AHP Method. AHP-TOPSIS, AHP-VIKOR, AHP-ELECTRE methods were
applied separately in the hybrid structure.

Methodology

Multi Criteria Decision Making Methods

The reason why Multi Criteria Decision Making (MCDM) methods are on the agenda more and more
every day; This is because it helps managers as much as possible in making the most appropriate
decision by obtaining optimum results in a simple and short time.

MCDM methods are based on the aim of making the verbal evaluations of decision makers about
criteria and alternatives comparable by converting them into numerical data. Thus, the most suitable
alternative among the possible solutions can be determined easily. (Yavaş, Ersöz, Kabak and Ersöz,
2014: 4).

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Purpose of the Study

It is necessary to help students who have decision making problems in the face of housing
problems that have become the most important problem of university students today.

The main purpose of this research is to show that the accommodation problems of students
studying at Düzce University can be solved by MCDM techniques (AHP and TOPSIS).

Scope of the Study

Students who have to solve the accommodation problem and the alternative accommodation
places in the solution are limited to Düzce. The question of the research is, Can the housing
problem of university students be solved with Multi Criteria Decision making (MCDM)
methods?

The reason for using AHP and TOPSIS methods in the research; It is the easy calculation of
outputs with few input parameters and simplicity of processing steps.

Research Model

In the study, AHP and TOPSIS methods were used in the selection of the most suitable place
for students with accommodation problems. One of the real estate agents in Düzce province
and the president of Düzce University student community were accepted as decision makers.
Interviews were made with the decision makers, they were asked to compare the criteria and
alternatives mutually, and the solution stages of AHP and TOPSIS methods were operated
taking into account these comparison values.

Determination of Criteria and Alternatives

In line with the relevant literature and the opinions of decision makers, the accommodation
problems of university students in Düzce were thoroughly examined and criteria and
alternatives were determined for the study.

Alternatives

A1: CDI

A2: Private Dormitory

A3: House for Rent

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Criteria;

K1: Price (TL)

K2: Distance (km)

K3: Number of Rooms

Findings and Comments

Determining the Most Suitable Accommodation with AHP Methods

Expressing Basic Data Set

In the decision problem, three criteria have been determined that will affect the selection. The
data are expressed in Table 1 to show the value of each alternative according to each criterion.

Table 1. Basic Data Set

K1:Price K2: Distance K3:Number of Rooms

A1: CDI 300 9 1

A2: Private Dormitory 200 1 1

A3: House of Rent 100 4 2

4.1.2. Determination of Criterion Weights with AHP Method

Table 2. Weight Values of the Alternatives according to the Criteria

K1:Price K2: Distance K3:Number of Rooms

A1: CDI 0.6316 0.6923 0.5000

A2: Private Dormitory 0.2105 0.2308 0.3750

A3: House of Rent 0.1579 0.0769 0.1250

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Weights of Criteria

W1 = 0.608 (K1)

W2 = 0.272 (K2)

W3 = 0.120 (K3)

Ranking Alternatives According to AHP Method

Alternatives were ranked according to AHP method, taking into account their priority values.
Relevant rankings are given in Table 3.

Table 3. Ranking Alternatives According to AHP Method

Ranking Values Result Ranking

A1: CDI 0.59978 1.

A2: Private Dormitory 0.23776 2.

A3: House of Rent 0.16151 3.

Ranking Alternatives According to TOPSIS Method

The alternatives were ranked according to the TOPSIS method, taking into account the
priority values and the weights of the relevant criteria. Relevant rankings are given in Table 4.

Table 4. Ranking Alternatives According to TOPSIS Method

Ranking Values Result Ranking

A1: CDI 0.81904 1.

A2: Private Dormitory 0.41912 2.

A3: House of Rent 0.21337 3.

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Findings and Comments

In the study, AHP and TOPSIS methods were used to determine the most suitable place for
university students who had accommodation problem. When the analysis results are examined
carefully, it is seen that; A1 (CDI) ranked first and A2 (Private Dormitories) ranked second.
According to these results, it would be appropriate for students in Düzce to choose CDI for
accommodation.

Results and Suggestions

With the transition to university, accommodation becomes an important problem for students.
Because of this problem, university students first try to find a place to stay. Due to the stated
reasons, the accommodation problem of university students can be considered as a decision
problem. Therefore, AHP and TOPSIS methods were preferred among multi-criteria decision
making (MCDM) techniques in this study.

In the application part of the study, analyzes were conducted to determine the most suitable
accommodation for university students. It has been shown that multi-criteria decision making
(MCDM) methods can be used in solving the related decision problem.

CDI is the most suitable place among the places that are accepted as an alternative for
students who have housing problems in Düzce. The results of the study were shared with
relevant authorities. Actual optimization methods can be used in similar studies in the future.

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References

Yavaş, M, Ersöz, T, Kabak, M, Ersöz, F . (2014). Otomobil Seçimine Çok Kriterli Yaklaşım
Önerisi. İşletme ve İktisat Çalışmaları Dergisi, 2 (4) , 110-118. Retrieved from
https://dergipark. org.tr/en/pub/iicder/issue/31646/347024

Aydın, Y. ve Eren, T. (2018). Hava Savunma Sanayii Alt Yüklenici Seçiminde Bulanık
Mantık Altında Çok Kriterli Karar Verme ve Hedef Programlama Yöntemlerinin
Kullanılması. Journal of Aviation, 2 (1), 10-30.

Balo, F., & Şağbanşua, L. (2016). The Selection of the Best Solar Panel for the Photovoltaic
System Design by Using AHP. Energy Procedia, 100, 50–53.
https://doi.org/10,1016/j.egypro.2016.10.151

Caputo, A. C., Pelagagge, P. M., & Salini, P. (2013). AHP-Based Methodology for Selecting
Safety Devices of Industrial Machinery. Safety Science, 53, 202–218.
https://doi.org/10.1016/j.ssci.2012.10.006

Çalık, A. (2018). Bulanık Çok-Amaçlı Doğrusal Programlama ve Aralık Tip-2 Bulanık AHP
Yöntemi İle Yeşil Tedarikçi Seçimi. Selçuk Üniversitesi Sosyal Bilim Enstitüsü Dergisi, 39,
96-109

Ulutaşı, A. ve Çelik, D. (2019). Transpalet Seçimi Probleminin AHP ve EDAS Yöntemleri ile
Değerlendirilmesi. Business & Management Studies: An International Journal, 7, 2, 668-686.

Gül, E, Eren, T . (2017). Lojistik Dağıtım Ağ Problemlerinde Analitik Hiyerarşi Prosesi


Yöntemi ve Hedef Programlama ile Depo Seçimi. Harran Üniversitesi Mühendislik Dergisi, 2
(1) , 1-13. Retrieved from https://dergipark.org.tr/tr/pub/humder/issue/30491/329546

Saaty L T (1999). Basic Theory of the Analytic Hierarchy Process: How to Make A Decision
Rev. R. Acad. Cienc. Exact. Fis. Nat. (Esp), Vol. 93, N. 4, pp. 395-423.

Çakır, S. ve Perçin, S. (2013). AB Ülkeleri’nde Bütünleşik Entropi Ağırlık-TOPSIS


Yöntemiyle AR-GE Performansının Ölçülmesi, Uludağ Üniversitesi İktisadi ve İdari Bilimler
Fakültesi Dergisi, XXXII (1), 77-95

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Çizmecioğlu, S. (2019). Tedarik Zincirinde Çok Kriterli Karar Verme Yöntemleriyle
Sürdürülebilir Tedarikçi Seçimi Ve İmalat Sektöründe Bir Uygulama. Yüksek Lisans Tezi,
Konya Karatay Üniversitesi. Konya

Gençer, Y.G. ve Selçuk, G. (2019). AHP ve TOPSIS Yöntemleri ile Otomotiv Plazasının En
Uygun Tesis Yeri Seçimi Kararının Verilmesi. Journal of Politics, Economy and
Management, 2, 1, 45-53.

Hwang, C. L. and Yoon, K., 1981. Multi Attiribute Decision Making Methods and
Applications, Springer-Verlag

Supçiller, A.A. ve Deligöz, K. (2018). Tedarikçi Seçimi Probleminin Çok Kriterli Karar
Verme Yöntemleriyle Uzlaşık Çözümü. UİİİD-IJEAS, 18, 355-368.

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Analysis of Green Supply Chain Management Systems Adopted by Indian Retailers

Inderpreet Singh, India

Tecnia Institute of Advanced Studies, India

Sonia Gandhi, India

Lovely Professional University, India

Abstract

The Indian retail sector which is the fifth-biggest retail goal all-inclusive, has been positioned
as the most appealing developing business sector. Retail Industry has been the key benefit
driver for India's development as of late. These days retail is the popular expression in India.
It has risen as the most energizing and most marvelous portion of business or trade. This
paper analyze the procedure of the retail sector of India that it follows in terms of adoption of
green practices in supply chain management with the various criteria appraised by the retailers
with the respect to green practices. Secondary source of data collection technique is used to
identify the problem related to green supply chain and analyzing the recent trends in the
country. The study concludes that organizations are additionally thinking about their
provider's natural practices. It appears to be distinguished that an enterprise would advance
self as being green, by making their workplaces zero carbon, in the endeavor to make itself all
the more engaging offer more items to buyers.

JEL Code: M31


Keywords: Green marketing, green practices, supply chain, environment friendly

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Introduction

The retail sector, one of the major pillars of the Indian economy, accounted for 10 percent of
GDP ( Gross Domestic Product) and 8 percent of jobs in the region. Retail Industry has been
the key benefit driver for India's development as of late. These days retail is the popular
expression in India. It has risen as the most energizing and most marvelous portion of
business or trade. Productive administration of green practices has expected to be more
noteworthy as it is the biggest resource of the Indian retailers and their stores network the
executives having direct effect on its benefit. The entire planet is heading toward a 'greener'
way of working and there is little difference in retail. As an important part of the green
marketing programme, this field has grown. As individuals call it, green retail assimilates the
accessibility, presentation and promotion of green goods, sustainable green supply chain
practises and ethical business practises in the retail sector. In the wake of the ceaseless fixing
of standards with respect to ecological issues, expanded rivalry and rise of new sorts of
dangers in the assembling division, it has become basic that the retail part ought to go for
these different green practices.

India can situate itself as a lead player in Asia if the retail area here achieves the serious
qualities by reacting to the evolving markets. "In the present exceptionally serious condition,
as organizations are feeling the squeeze to decrease costs, venture into new markets, and grow
new items, each maker's store network is extending and getting progressively mind-boggling.
Successfully overseeing unpredictability can be a producer's most prominent resource.
Specialists from the retail business attested that the present retail blast in India could possibly
support its energy if inventory network the executives is given the top need by the retail
players. The production network has a key task to carry out in the extension and benefit of
numerous organizations, yet it has once in a while been adjusted to fulfill the new needs put
upon it.

MAJOR PLAYERS IN THE RETAIL INDUSTRY

1. PANTALOON

2. K RAHEJA GROUP

3. TATA GROUP

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4. RPG GROUP

5. LANDMARK GROUP

6. PIRAMAL GROUP

7. BHARTI-WALMART

8. RELIANCE

9. AV BIRLA GROUP

Retail is the largest industry in India, accounting for over 10 percent of GDP and about eight
percent of employment in the country. India's retail market is at a crossroads. With many
players joining the industry, it has emerged as one of the most competitive and fast-paced
industries. That said, the heavy initial investments needed make break even difficult to
accomplish and so far many players have not tasted success. The future, however, is
promising; the demand is growing and government policies are becoming more mobile.

Green logistics (or green supply chain) is used by many major Indian retailers and smaller
players, which is a more sustainable choice for shipping and logistics. In the e-commerce
market, where electric delivery rickshaws are used to deliver goods (or consignments), the
trend is rapidly picking up. In India, the green supply chain trend is also gaining momentum.
Many retailers grow goods that are sustainable and that are directly sourced or manufactured
from organic (or local) farmland.

Initiatives to push sustainability in India are also pursued by the Central and the related State
Governments. In several states throughout India, single-use plastic is forbidden. For retailers
and brands operating in a value-conscious market like India, however, transitioning to
sustainable packaging presents a challenge as they need to find cheaper alternatives to plastic
packaging. The positive news is that recycled material is used for packaging by many leading
brands and e-commerce businesses.

Choosing a consistent policy to ensure ease of doing business, modernization & adoption of
technology, access to capital & subsidies in selected areas, and continuous upskilling of
employees are the four major focus areas that need a drive from the government. As the MCA
(Ministry of Corporate Affairs) reduced the procedures for starting a new company, there was

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considerable improvement in the ease of doing business. The Government has also reduced
the number of authorisations required to open mom-and-pop shops and eateries.

FSSAI (Food Safety and Standards Authority of India) introduced new packaging regulations.
Small retailers are encouraged to facilitate digital purchases by offering their overall turnover
at a lower rate of 6 percent of the projected income.

Here, as the government partnered with private players to impart industry-specific skills, the
emphasis was on Public-Private Partnership (PPP), rendering the participants employable in
the retail sector. There is also a significant number of women in the retail sector entering the
workforce.A McKinsey report. The ascent of the Indian Consumer Market appraises that the
Indian buyer advertise is probably going to grow multiple times by 2025.

Market Size:-

India's retail sector has undergone a huge transformation and has seen phenomenal growth in
the last 10 years. By 2026, the overall retail market is projected to hit the $1.75 tn mark from
$795 bn in 2017. India's e-commerce retail market, which stood at $30 billion in 2019, is also
expected to rise to $200 billion by 2026 at a 30 percent CAGR for gross merchandise value
and and have a market penetration of 12%. The direct-to - consumer segment may have an
addressable market of US $100 billion by 2025. India is predominantly an unorganised retail
sector, contributing 88% to India's overall retail industry. At present, the consolidated retail
sector is estimated at $60 bn, while the remainder is retained by the unorganised market. By
2021, the share of the organised retail market is expected to grow to 22-25 percent, decreasing
the share of the unorganised retail market to 77 percent. Therefore, the organised retail sector
has the capacity to hit roughly $140-160 bn.

Investment Scenario:-

According to the Department for Promotion of Industry and Internal Trade ( DPIIT), Indian
retail trade earned Foreign Direct Investment ( FDI) equity inflow of US$ 2.12 billion during
April 2000-March 2020. With the growing need for consumer products in various sectors,
including consumer electronics and home appliances, over the past few months, many
companies have invested in the Indian retail market. In 2019, the retail sector in India

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attracted US$ 970 million from different private equity funds. Rs 2.75 billion ( US$ 37.68
million) was invested by Walmart Investments Cooperative U.A in Wal-Mart India Pvt Ltd.

Government Initiatives:-

In order to boost the retail sector in India, the Government of India has taken different
initiatives. Below, some of them are listed:

In an effort to enable e-commerce companies and foreign retailers to sell Made in India
consumer products, the government can change Foreign Direct Investment (FDI) rules in food
processing.

The Government of India has approved 100 % FDI through the automatic route in the online
retail of goods and services, thus providing clarification on the existing e-commerce
businesses.

Literature Review

Green marketing was given unmistakable quality in the late 1980s and 1990s after the
procedures of the main workshop on Ecological promotion held in Austin, Texas (US), in
1975. A few books on green advertising started to be distributed from that point. As per the
Joel makeover (an essayist, speaker, and planner on clean innovation and green promoting),
green showcasing faces a great deal of difficulties as a result of the absence of guidelines and
open accord on what establishes "Green" The green advertising has developed over some
stretch of time. As indicated by Peattie (2001), the development of green showcasing has
three stages. The main stage was named "Biological" green promoting, and during this period
all advertising exercises were worried to support ecological issues and give solutions for
natural issues. The runner up was "Ecological green advertising and the emphasis moved on
clean innovation that included structuring of inventive new items, which deal with
contamination and waste issues the Third spot was "Maintainable" green showcasing. It
became a force to be reckoned with in the late 1990s and mid-2000.

‘RashadYazdanifard, IgbazuaErdoo Mercy (2011)’, The Impact of green showcasing on


customer fulfillment and ecological security, present Green advertising as an instrument for
ensuring the earth for the future generation.It says that green promoting positively affects
natural wellbeing. On account of the developing worry of ecological insurance, there is a rise

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of another market which is the greenmarket.They propose that for organizations to make due
right now, need to practice environmental awareness in all part of their business.

A lot of retailers explicitly decide to source and retail items from producers who plan and
produce earth benevolent items, (for example, items with characteristic fixings, least asset
utilization and outflows, and naturally agreeable bundling, and so forth) and embrace
naturally amicable strategic policies (least discharges and waste reusing, and so forth) These
producers expressly incorporate ecological issues in items to decrease their natural effect
regarding materials, assembling, use and removal (Pujari et al., 2003). In this way, the
retailers advance these items dependent on their decreased effect on the climate, plan and
practical highlights (natural wellbeing, recyclability/reusability and biodegradable fixings,
and so on), and their importance to earth amicable way of life (D'Souza et al., 2006). They
additionally decide to source items those are granted eco-names, underscore on their reusing
qualifications and guarantee believability of their ecological cases (Nimon and Beghin, 1999;
Davis, 1994). They additionally advance green items dependent on social worth related with
them, for example, squander recuperation and reusing, reasonable exchange, wellbeing and
wellness, supportability related advantages and activities supporting nearby networks (Perry,
2012; Jones et al., 2007).

Objectives of the study

To study the procedure of the retail sector of India that the follows for green practices
adoption in supply chain management.

To find out the techniques which act as a decision making tool for the retailers.

To identify the business prospects adopted by the retailers with respect to green practices.

Research Methodology

To decide Source of data the Secondary source of data collection technique is used to identify
the problem and analyzing the recent trends.

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To decide form of data collection:-

The targets of the task are to such an extent that secondary data is required to accomplish
them. So, Secondary data is utilized for the venture. The methods of gathering optional
information for this exploration are journals, magazines, books, papers, and sites.

Analysis of Data

The Indian retail sector has seen unprecedented growth in the last few years. The success in
this competitive and dynamic sector depends on achieving an efficient logistics and supply
chain, which can be provided by professionals, as they combine the best systems and
expertise to manage a ready flow of goods and services.

In India, the logistics market is principally thought to mean transportation. In any case, the
components of coordination cost for enterprises incorporate transportation, warehousing.
Stock administration, dispatch, and other worth included administrations, for example,
bundling

The coordination costs represent 13 percent of GDP. The business is at present on a rise and is
ready for a development of 20 percent in the coming years. With the extension of retail, the
inventory network will take on an undeniably significant job. With the end buyer getting all
the more requesting and time cognizant, the requirement for in the nick of time benefits is
expanding. In retail, where rivalry is extreme and a lot is on the line, consumer loyalty is
foremost.

Industry specialists opine that in India too the enormous retail chains will follow the
worldwide model of re-appropriating their coordinations in order to all the more likely
oversee complex inventory families and spotlight on the center business. For the retail chains
in agri-produce, the productivity of coordinations is basic and can for sure influence the brand
as it were.

Four R's:

Follow the 4 R's of SCM- Right time, Right spot, Right value, Right amount

- to harvest the upsides of:

 Continued stock decrease by as much as 60 percent for both the buyer

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and the seller

 Improved estimate precision by as much as 30 percent.

 Upgraded store rack stock rates by as much as 8 percent

 Expanded deals by as much as 20 percent

 Reduce logistics costs by as much as 4 percent

The key players in the retail business are persevering to address the difficulties by starting
both natural and inorganic development to use the retail opportunity Logistics firms have
additionally begun concentrating on related administrations, for example, Customs clearing
and sending, Inbound warehousing, naming and bundling, request picking, and Inventory
management.

Business Practices To Go Green

1. Printing Less Stuff = Using Less Paper

2. Go Digital with Your Documents

3. Pull that plug

4. Get Waste Wise

5. Work With Like-Minded Companies

6. Single-word: Recycle!

7. Establishment of a Company Recycling Program for Electronics

8. low the Flow of Junk Mail

9. Manufacture Your Office Green from the Floor Up

10. Instruct Yourself

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Recommendations

 Planning the Supply Chain with present-day strategies

 Utilization of Information Systems, web, and most recent innovation as

Distribution Channel for retailers

 Create consistency in flexibly anchor activities to improve short and long

term objectives

 See how Green Supply Chain Analysis can target squandered material,

squandered vitality, and underutilized assets

 Overcome officials confusions of how the green gracefully chain will

affect their expenses in tasks

 Characterize Green Supply Chain ventures to increase the value of your

association.

 Comprehend the significance of estimating your corporate carbon

impression

 Work together with wholesalers to grow all the more environmentally

friendly packaging.

Conclusion

E-commerce in the country is expanding steadily. Customers at the lowest prices have an
ever-increasing range of goods. The main disruption in the retail industry is likely to be
generated by e-commerce, and this trend is likely to continue in the years to come. Digital
retail platforms (e-commerce) should be leveraged by retailers, which would allow them to
spend less money on real estate while reaching out to more consumers in Tier II and Tier III
cities. Traditional retail is expected to hold a large share of 75 percent by 2021, organised
retail share to reach 18 percent and e-commerce retail share to reach 7 percent of the overall

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retail market. Nonetheless, the industry's long-term outlook is optimistic, backed by rising
sales, favorable demographics, the entry of foreign players, and growing urbanization.

This paper endeavors to follow Key Performance Indicators (KPIs) so as to make sense of the
exhibition of the Supply Chain in the retail segment It likewise centers around stock
recharging techniques and limit use in the retail area as of late, this part has invested a lot of
energy and cash attempting to improve its activities in such a manner to react productively to
clients' needs.

By actualizing a green gracefully chain and supporting it with sound, computerized forms,
you will profit by more prominent control and permeability into the Purchase-to-Pay tasks In
the course of recent years, organizations have been investigating approaches to diminish,
reuse and reuse, running from exorbitant activities, for example, developing LEED
(Leadership in Energy and Environmental Design) confirmed structures to setting up vitality
effective server farms and supporting natural practices in the working environment. A
developing zone fuses environmentalism is the green gracefully chain Companies on the main
edge of this pattern are keen on choosing providers not just founded on the customary
measures of value, quality, and dependability yet in addition dependent on how well they
agree to corporate social duty activities and natural issues.

Presently, organizations are additionally thinking about their provider's natural practices. It
appears to be distinguished that an enterprise would advance self as being green, by making
their workplaces zero carbon, in the endeavor to make itself all the more engaging offer more
items to buyers. That additional benefit will eventually utilize a larger number of assets and
discharge female horse carbon than the "zero-carbon workplaces would ever want to spare.

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References

Bowen, F. E., Cousins, P. D., Lamming, R. C., & Faruk, A. C. (2001). The role of supply
management capabilities in green supply. Production and Operation Management, 10(2), 174–
189.
Bruce, M., Daly, L., & Towers, N. (2014). Lean or agile: a solution for supply chain
management in the textiles and clothing industry? International Journal of Operations and
Production Management, 24(2), 151–170.
Chan, H. K. (2007). A proactive and collaborative approach to reverse logistics – a case
study. Production Planning & Control, 18(4), 350–360.
Chan, R. Y. K. (2010). Corporate environmentalism pursuit by foreign firms competing in
China. Journal of World Business, 45(1), 80–92.
Chan, H. K. (2011). Supply Chain Systems – Recent Trend in Research and Applications.
IEEE Systems Journal, 5(1), 2–5.
Chan, H. K., & Chan, F. T. S. (2010). Comparative Study of Adaptability and Flexibility in
Distributed Manufacturing Supply Chains. Decision Support Systems, 48(2), 331–341

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Intercultural Competence as a Key Factor in International Trade

Marinică Tiberiu Șchiopu, Romania

University of Craiova, Romania


Faculty of Letters
marinica.schiopu@gmail.com

Abstract

The present paper represents an analysis of the importance of the intercultural competence for
international trade. Defined as a set of knowledge about other cultures and abilities to interact
with people pertaining to different cultural backgrounds, intercultural competence is a factor
of paramount importance for those involved in international trade. In our globalised society,
the intercultural dialogue is much more intense than before due to the technological and
communicational improvements, and the multinational companies which bring together
persons from different cultures. Intercultural competence is acquired through experience and
represents a decisive factor for high performance in different fields. Irrespective of one’s
social and cultural status, a person has to face intercultural encounters more and more
frequently due to our highly interconnected world. The intercultural education, the training to
work in multinational teams and the knowledge of other cultures and lifestyles are
compulsory for all contemporary humans. Thus, the main research question of my present
study is “How important is the intercultural competence in international trade?”. My analysis
shall try to offer an answer to the above-mentioned question from historical, socio-cultural
and economic perspectives.

Keywords: Contact, exchange, globalisation, intercultural competence, international trade.


JEL Codes: B17, B27

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The Relevance of Interculturality for the Contemporary Society

Culture is one of the main features of human beings and it is defined by Cambridge Advanced
Learner’s Dictionary as “the way of life, especially the general customs and beliefs, of a
particular group of people at a particular time” (CALD 2013: 367). But Silvana Condemi
extended its applicability to other species of social animals as well, considering culture as a
catalyzer of human evolution:

“What transformed certain lineages of Australopithecus into humans? We believe it’s quite
clear: culture. Culture refers to any set of behavioural traits, symbols, and ideas shared by an
animal group across space (within members of the same group) and time (over generations).
According to this definition, groups of dolphins or chimpanzees also have cultures, though it
hasn’t had the same evolutionary impact for these animals as it has had for humans”
(Condemi & Savatier 2019: 17).

This could be regarded as pre-culture, a way of life specific for social animals, generated by
life in large groups.

Thus, if culture is the way of life of a certain ethnic group at a certain time, what is
interculturality? To answer this question one has to look at human history and take into
consideration the high level of mobility of humans. Interculturality can be described as a
process of cultural blending, the interaction between people pertaining to different cultures,
which generates mutual enrichment. This phenomenon is dealt with by Intercultural Studies, a
term that “was coined to designate an emerging field of transdisciplinary preoccupations
regarding the contacts and relations that, on both the individual and the collective levels, are
articulated in contexts of cultural diversity and heterogeneity” (Dietz 2009: 51).

As Gunther Dietz pointed out, interculturality could occur on two levels: individual and
collective. It can occur between representatives of two or more countries or within the same
country provided it is a multi-ethnic state. Interculturality is as old as human race and it took
the form of trade, migration or war. These are the main ways the intercultural dialogue has
been established in history. The intercultural dialogue has been defined as:

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“[…] a process that comprises an open and respectful exchange between individuals, groups
and organizations with different cultural backgrounds or world views. Among its aims are: to
develop a deeper understanding of different perspectives and practices; to increase
participation (or the freedom to make choices); to ensure equality; and to enhance creative
processes” (Majhanovich, Fox & Pašalić Kreso eds 2009: 1).

For a better intercultural dialogue, it is necessary to improve intercultural communication and


intercultural education. This is the way to the improvement of intercultural competence as
well. This type of competence is crucial for effective communication between representatives
of different cultures. The intercultural competence consists of a set of skills, attitudes and
knowledge necessary in the intercultural communication process. MacLuhan’s metaphor of
the “global village” (McLuhan 1962: 31) refers to the shrinking of the world due to
globalization and the unprecedented development of technology, which brought closer people
pertaining to different cultural backgrounds, especially those involved in businesses and trade
who had to strengthen their intercultural competence:

“Although information technology makes communication among businesses more convenient,


faster, and user-friendly, the information-driven environment places certain challenges on the
skills level of business professionals, including the level of intercultural competence”
(Matveev 2017: 4).

Taking into account globalization and the high level of mobility of humans nowadays,
intercultural competence is of paramount importance for each of us, whether we are involved
in business/trade or not.

International Trade: A Multimillenary Intercultural Activity

The practice of trade is about 5000 years old and it started relatively recently in the evolution
of humans:

“It seems logical to assume that with this very long time for modern humans to evolve,
commerce and trade would have had a long and rewarding history. Not so. Despite the very
long history of humankind on our planet, the institutions of commerce and trade are only
around five thousand years old, probably having emerged around 3000 BCE in Mesopotamia”
(McNabb 2016: 10).

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Commerce started after humans produced more than their necessary, exchanging the excess
for whatever they lacked. Probably, as McNabb emphasized, the first traders were the ancient
Middle-Eastern, Egyptian and Harappan farmers.

The Silk Road was a crowded trade route for millennia and connected empires, capitals and
cultures across Asia and Europe, facilitating the intercultural dialogue between East and West
and the spread of innovations:

“It was in this bridge between east and west that great metropolises were established nearly
5,000 years ago, where the cities of Harappa and Mohenjo-Daro in the Indus Valley were
wonders of the ancient world, with populations numbering in the tens of thousands and streets
connecting into sophisticated sewage that would not be rivalled in Europe for thousands of
years. Other great centres of civilisation such as Babylon, Nineveh, Uruk and Akkad in
Mesopotamia were famed for their grandeur and architectural innovation. One Chinese
geographer, meanwhile, writing more than two millennia ago, noted that the inhabitants of
Bactria, centred on the Oxus river and now located in northern Afghanistan, were legendary
negotiators and traders; its capital city was home to a market where a huge range of products
were bought and sold, carried from far and wide” (Frankopan 2015: iii).

Thus Europe and Asia have been in close contact since ancient times, and this is the
explanation of the similarities between some eastern and western cultures.

After the Age of the Great Geographical Discoveries, Europeans shifted their trade mainly on
the sea and this was the starting point of the colonial empires. Colonialism represented a
phenomenon of cultural contact and intercultural dialogue, a period of western rise: “By 1914
[…] Europe held a grand total of roughly 85 percent of the earth as colonies, protectorates,
dependencies, dominions, and commonwealths” (Said 1994: 8). Although its consequences
were negative for the colonised people, it has set the foundation of globalization (“the global
village” as McLuhan stated).

The Industrial Revolution accelerated the process of globalization due to the innovations in
the field of transport and communication, generating a progressive “shrinking” of the world.
Thus, trade has constantly improved and developed ever since. An effect of this complex
phenomenon was the intensification of interculturality: people from remote parts of the globe

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could get to know each other, representatives of a certain culture could penetrate other
different and distant cultures.

The technological and communicational innovations of the last century made possible
unprecedented intercultural exchanges, improving the intercultural dialogue. The
development of the internet could be considered the most significant step towards a highly
efficient international trade on the basis of intercultural virtual contact, although the gravity
model states that the international trade between two countries diminishes with distance: “The
Internet makes instant and almost free communication possible between people thousands of
miles apart, while jet transport allows quick physical access to all parts of the globe”
(Krugman, Obstfeld & Melitz 2018: 38). But sometimes political forces can negatively
influence international trade, in spite of the excellent transport and communication facilities.

The Importance of Intercultural Competence for Successful International Trade

International traders can succeed even without intercultural training, but they would definitely
derive significant benefit from intercultural education which is the basis of intercultural
competence. An outcome of this type of competence is efficient communication and
intercultural dialogue. The paramount importance of intercultural education in the
contemporary interconnected society has been acknowledged by several professors and
academicians: “[…] considering all models of precedent in the educational field, the best
answer to cope with ethnic and cultural diversity is the intercultural model. Only the concept
of Intercultural Education can be placed alongside the notion of interaction and interactive
integration” (Portera 2011: 17).

The intercultural competence can be defined as the capacity of individuals to efficiently


communicate with interlocutors from other cultures on the basis of some acquired abilities to
interact socially, to understand and adapt to different cultural environments. The intercultural
competence and the abilities for intercultural communication can be acquired through learning
and experience, representing decisive factors to achieve great performance in different fields.
Regardless of our social and cultural status, nowadays we are all more and more frequently in
the situation to interact and communicate interculturally. The intercultural education,
individuals’ training to work in multinational teams and, first of all, the knowledge about
other cultures and lifestyles are sine qua non conditions for contemporary humans.

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In order to adequately behave in a different cultural environment, to make themselves
understood and to understand correctly the messages they receive, people have to learn the
cultural repertory of the new interlocutors: firstly the language, then beliefs, values and
attitudes, styles of communication, the significance of gestures, the accepted ways to behave
in particular situations, the way of life and customs of their interlocutors, in a nutshell.

Efficient communication does not mean only to convey information but to mutually
understand the desires and needs of the other. Thus, the intercultural communication
competence involves the achievement of complex capacities which can be classified on
different levels: linguistic, perceptive, cognitive, affective, attitudinal and behavioural. This
competence is an indispensable condition for the efficiency of the activity in every field
(politics, administration, trade, business, art, science, education etc.) and for all people
involved in intercultural interactions: dignitaries, managers, students, teachers, researchers,
traders, the staff of multinational companies and common workers who are often in the
situation to search for a job abroad, or the tourists who encounter different cultures and
lifestyle.

People are conditioned, in their communicational and behavioural actions, by their native
culture. In this situation, the intercultural communication becomes difficult and requires the
acquisition of new abilities and capacities. The exceeding of the language barrier is merely the
first step. Later on, they have to acquire abilities of social interaction, to adapt to a foreign
lifestyle and environment, to understand and accept deeper differences (symbolical, religious,
cultural), to adapt to interlocutors’ perceptions, values and representations, to their language
and discursive practices (for public and private spaces).

Intercultural competence is acquired through a long range of difficult experiences. The


occasional or the longer contacts with people pertaining to different cultures generate in the
first stage a cultural shock, anxiety and uncertainty, and after that a gradual process of
adaptation which can lead to the integration into the new cultural environment. A blend of
education and training is the most effective way to acquire intercultural competence:

“Becoming interculturally competent: how does it happen? […] One possible answer to this
question ist o claim that people acquire intercultural competence purely through experience,
through living abroad, travel, meeting new people and being in different situations. It might

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be further claimed to assume that it is possible to acquire intercultural competence in any
other way, through for example more formalised learning, amounts to mere self-deception. At
the other extreme, it may be claimed that intercultural competence is acquired only through
participation in systematic programmes of instruction in which objectives are clear and
learning is not left to chance” (Feng, Byram and Fleming eds 2009: 1-2).

In the international trade and business field, the improvement of intercultural competence is
associated with the betterment and the success of the organization:

“Intercultural competence, at the individual level, in the form of personal attributes,


knowledge and skills, is presumed to be associated with global career success, and, at the
organizational level, with business success through the more effective management of
business operations in this increasingly diverse range of host locations” (Morley and Cerdin
2010: 805).

The intercultural communication competence is a key factor for the success of international
traders, who have to find ways and means to deal with several problems such as the linguistic
barrier or the cultural differences and to adapt their activity to the specific cultural profile of
the customers:

“When people engage in an intercultural dialogue or international trade, they are inevitably
facing the challenge from communication barriers such as cultural stereotype and prejudice,
identity conflict, language deficiency, and the lack of interaction skills. Only through the
acquisition of intercultural communication competence (ICC) can these problems be solved in
the process of global interaction. ICC constitutes an indispensable capacity for people to
survive and establish productive relationships in the globally interconnected world” (Dai and
Chen 2014: 1).

Either it is referred to as intercultural competence or intercultural communication


competence, this is a crucial factor for the efficiency of international trade and business, due
to the fact that these processes consist of interaction between people having different cultural
backgrounds. Thus, to efficiently negotiate the international traders should develop and
improve their intercultural competence.

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Digitalization: A Pro for a Better Intercultural Dialogue

As we are currently in the era of digitalization, we are enjoying the benefits of this complex
phenomenon. The digitalization refers to the process of moving to digital business, bringing
new opportunities through the use of digital technologies in our continuously changing
society:

“Numbers, digitalization, quantification, Big Data, algorithms, digital social media and
platforms – all these terms refer to changes at work today and to the process of generalizing
the digitalization of society. However, it is impossible to decide whether these are
developments or a revolution, continuities or ruptures, ‘simple’ changes or major mutations”
(George 2020: xxii-xxiii).

Thus, digitalization is contributing to the change of the world through the change of economy,
business, trade and an improving intercultural dialogue. The easy accessibility of goods on the
internet (online shops/platforms) plays an important role in the circulation of goods from one
corner of the world to another, from one culture to another one. For instance, a person from
Europe or the USA can easily purchase clothes, handicrafts or food from India or Iran and
establish an intercultural contact pursuing his or her interest in eastern cultures, or vice versa.

If the social media platforms improve the intercultural dialogue through verbal and written
communication, digitalization brings its contribution to this process by facilitating the
circulation of goods, products and services among people and cultures. So, digitalization is a
crucial aspect of international trade:

“[…] digitalization leads to increasing international integration: by fostering the international


trade of goods and services, foreign direct investments, the business strategies of the
companies involved, and the need to harmonize policy approaches across countries and within
sectors” (Vogelsang 2010: 221).

The international trade and the intercultural dialogue are interrelated processes and
digitalization brings its contribution to the improvement of both.

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Conclusion

Living in a continuously “shrinking” world, McLuhan’s “global village”, people of various


cultural backgrounds come in contact on a daily basis, in person or virtually. Thus, we are the
actors of a continuous intercultural dialogue, facing intercultural challenges more and more
frequently. To deal with these challenges people have to improve their intercultural
competence through intercultural education and training. The intercultural competence is an
enriching process which helps individuals to cope with a diversity of situations generated by
our interconnected society. This type of competence is of paramount importance in
international trade as well, especially nowadays when digitalization has fostered the trade of
goods and services across nations and cultures.

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References

Colin McIntosh (ed.). 2013. Cambridge Advanced Learner’s Dictionary (CALD). Cambridge:
Cambridge University Press.
Condemi, Silvana; François Savatier. 2019. A Pocket History of Human Evolution. How We
Became Sapiens. New York: The Experiment.
Dai, Xiaodong; Guo-Ming Chen (eds). 2014. Intercultural Communication Competence:
Conceptualization and Its Development in Cultural Contexts and Interactions. Newcastle
upon Tyne: Cambridge Scholars Publishing.
Dietz, Gunther. 2009. Multiculturalism, Interculturality and Diversity in Education. An
Anthropological Approach. Münster: Waxmann.
Feng, Anwei; Mike Byram; Mike Fleming (eds). 2009. Becoming Interculturally Competent
through Education and Training. Bristol, Buffalo, Toronto: Multilingual Matters.
Frankopan, Peter. 2015. The Silk Roads: A New History of the World. New York:
Bloomsbury.
George, Éric (ed.). 2020. Digitalization of Society and Socio-Political Issues 2. London and
Hoboken: ISTE Ltd. & John Wiley and Sons.
Krugman, Paul R.; Maurice Obstfeld; Marc J. Melitz. 2018. International Trade: Theory and
Policy. London: Pearson.
Majhanovich, Suzanne; Christine Fox & Adila Pašalić Kreso (eds). 2009. Living Together:
Education and Intercultural Dialogue. Springer.
Matveev, Alex. 2017. Intercultural Competence in Organizations: A Guide for Leaders,
Educators and Team Players. Cham: Springer.
McLuhan, Marshall. 1962. The Gutenberg Galaxy: The Making of Typographic Man.
Toronto: University of Toronto Press.
McNabb, David E. 2016. A Comparative History of Commerce and Industry. Volume I: Four
Paths to an Industrialized World. New York: Palgrave Macmillan.
Morley, Michael J.; Jean-Luc Cerdin. 2010. “Intercultural Competence in the International
Business Arena”, in Journal of Managerial Psychology, November, 2010, pp. 805-809. DOI:
10.1108/02683941011089099
Portera, Agostino. 2011. “Intercultural and Multicultural Education: Epistemological and
Semantic Aspects”, in Carl A. Grant and Agostino Portera (eds), Intercultural and
Multicultural Education: Enhancing Global Interconnectedness. New York & London:
Routledge.
Said, Edward W. 1994. Culture and Imperialism. New York: Vintage Books.
Vogelsang, Michael. 2010. Digitalization in Open Economies: Theory and Policy
Implications. Berlin and Heidelberg: Springer-Verlag.

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Supply Chain Financing Solutions And Their Effect On Small And Medium
Enterprises: A Theoretıcal Perspective

Ceyda AKTAN, Turkey

University of Turkish Aeronautical Association

Eyyüp Ensari ŞAHİN, Turkey

Hitit University

Abstract

It is part of a business life that all companies require an optimal amount of cash to continue
with their operations. The ones that operate on cash constraints can find themselves
experiencing problems with both their procurement and production. Often a disruption is
observed in the entire supply chain especially with companies who require, but have difficulty
obtaining, cash such as small and medium enterprises (SMEs). Given the constraints faced by
companies in their supply chains and the growing concern to obtain credit, or cash, the newly
developed financing instruments that are offered to companies, such as ‘Supply Chain
Finance’. It was seen from previous literature that there weren’t adequate studies to describe
SCF and link its importance to SMEs. Therefore, the aim of this study is to put forward the
general concepts of SCF and to discuss how SCF solutions affect the supply chain operations
of SMEs in light of previous studies. A literature review was conducted to fulfill the aim of
the study. The reason for conducting a literature review is to be able to gather and analyze the
pool of literature in order to draw the boundaries of the topic and to identify the existing gaps
within the research area. The results clearly indicate that in recent years the focus on
alternative financing models had increased due to increasing world trade, globalization and
higher levels of risk and competition faced by the companies. Supply Chain Finance is an
important financing method for both suppliers and buyers as it is seen to benefit both sides of
the trade while lowering costs in the process.

Keywords: Supply Chain Finance, SMEs, Reverse Factoring, Payables Finance


JEL Code: G23

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Introduction

It is part of a business life that all companies require an optimal amount of cash to continue
with their operations. The ones that operate on cash constraints can find themselves
experiencing problems with both their procurement and production. Often a disruption is
observed in the entire supply chain especially with companies who require, but have difficulty
obtaining, cash such as small and medium enterprises (SMEs), as the lack of resources in one
stage causes harm to the whole chain itself (Raghavan and Mishra, 2011). Also, with the
increase in the amount of trade worldwide, companies are in search of new ways to finance
their supply chain operations in order to stay competitive in the marketplace. Cash is now
even harder to come by. There has been many reasons attached to this search and major ones
discussed in literature being: the importance of supply chain initiatives and the 2008 Global
Crisis.

First of all the supply chain is seen by companies as a vital force creating shareholder value
and differentiation among competitors. However, there is still the knowledge that it is cost
reduction and revenue enhancement, which is behind supply chain initiatives rather than
creating value and differentiation (D’Avanzo et al., 2003). It needs to be known that, whether
directly or indirectly, any decision made regarding the company’s supply chain has an effect
on its cost and capital structure, the level of risk, its profits, and overall its value. For this
reason, supply chain management decisions needs to be given full attention and be thought of
more than just a back –office function of a company (Gomm, 2010).

Secondly, the 2008 recession and now the COVID 19 pandemic experienced worldwide
caused an economic downturn in countries that limited the amount of loans given and
increased the cost of debt (Ivashina and Scharfstein, 2010). This resulted in liquidity, in other
words cash, to dry up from certain industries. To overcome this situation, companies were
forced to extend trade credit or to increase payment terms to help each other (Gelsomino et
al., 2016). Especially SMEs were among the ones who suffered the most as they already had
difficulty in obtaining financing for their business and now slowly they had started to slow
down or even stop their operations. Considering the importance for all of these companies and
their effects in the country’s economy, a need for liquidity or working capital optimization
became a must (Hofmann, 2005). To optimize the working capital of companies both

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financial institutions and/or technology providers introduced new solutions and programs, one
of them being the Supply Chain Finance (herafter, SCF) solution (Camerinelli, 2009).

Given the constraints faced by companies in their supply chains and the growing concern to
obtain credit, or cash, the newly developed financing instruments that are offered to
companies, especially ‘Supply Chain Finance’ has captured our attention. It has also come to
our attention that the previous literature shows there were no adequate research conducted to
describe SCF and link its importance to SMEs. The focuses have been on the general concept
of SCF, its importance and challenges, or specifically on reverse factoring itself. However, the
direct connection with SMEs has been limited. Therefore, aim of this study is to put forward
the general concepts of SCF and to discuss how SCF solutions affect the supply chain
operations of SMEs in light of previous studies. A literature review was conducted to fulfil
the aim of the study.

This study will contribute to literature in few different aspects. The number of studies
focusing on supply chain financing is increasing in number as time goes by due to changes
taking place in the macro environment. Although the number is increasing there is still no
certainty as to what supply chain finance actually is. It is referred to in financing solutions
such as payables financing, receivables financing and inventory financing but is also directly
referred to as reverse factoring. This will be analyzed in the study and its meaning will be
discussed. Another important point is that literature lacks a discussion on the theoretical
perspective of the relationship between small and medium enterprises and the use of supply
chain finance. This study will bring together the knowledge on the use of supply chain finance
solutions in small and medium enterprises.

Research Method

The method for analysis in this study is conducting a literature review. The reason for
conducting a literature review is to be able to gather and analyze the pool of literature in order
to draw the boundaries of the topic and to identify the existing gaps within the research area
(Xu et al., 2018). There are many different types of literature reviews such as systematic,
narrative, argumentative, integrative, and theoretical literature reviews, with each having a
different purpose for analyzing previous studies. Among these types we have chosen to use a
narrative literature review in our study to fulfill our aim and answer our research question.

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Narrative literature reviews are used to critique previous literature and to make a summary of
it. It is also useful when conclusions needs to be drawn while both the gaps and the
inconsistencies are identified in the pool of literature used (Baumeister and Leary, 1997).

In order to answer the research question, which is the affect of the supply chain finance
solutions on the supply chain operations of the SMEs, first the appropriate search terms
needed to be identified. The term Supply Chain Finance covers both the areas of supply chain
management and finance. For an appropriate and correct discussion of the topic and the
collection of data, keyword terms selected should be carefully chosen under both of these
search strings together with supply chain finance and SME strings. Under the supply chain
management string, the keywords used to search literature were: supply chain, supply
management, value chain, procurement, and logistics management. In the second strand of
research, the finance strand, the keywords used to search were: finance, financial
management, financing, credit, trade credit, and bank credit. The core of the study, SCF, was
searched using: supply chain finance, supplier finance, buyer finance, reverse factoring,
factoring, buyer-led financing, buyer – initiated financing, supplier –led financing, supplier –
initiated financing, receivables financing, payables financing, inventory financing, invoice
discounting, dynamic discounting, and reverse securitization. The use of these particular
keywords was chosen after analyzing literature reviews conducted on the same or similar
topics, experience, and through expert views. The keywords were entered into various search
engines such as Google Scholar, EBSCO and Scopus databases and relevant articles were
collected. For the purpose of the study books and book chapters were excluded from the
search. Articles were then classified according to their topics and ones referring to Small and
Medium Enterprises (SMEs) were collated to answer the research question. There were no
date restrictions made on the search.

The study then continues with a summary of the findings from the analysis and short
descriptions of each of the researched elements: Small and Medium Enterprises, financing
need of SMEs, and Supply Chain Finance. How these elements link together and how future
research can shape the area will be discussed at the end.

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Findings

Finding of this study can be grouped under two major headings: SMEs and SCF. Through an
extensive analysis of past research, first of all the concepts relating to small and medium
enterprises will be put forth. These concepts are the meaning of SMEs, the role that they have
within the business world and also particularly their importance within the supply chain. Then
the financing problems these SMEs are facing will be collaborated in the following section,
which will lead into the topic of supply chain finance. Second part of the research findings
will focus on the supply chain financing solutions. In this section it is important to look at
previous studies, in order to correctly put forth how supply chain finance actually evolved,
how it became an integral part of the supply chain network besides the physical and
information flows, and most importantly what it actually covers. In the last section studies
focusing on the financial aspects of SMEs and the use of supply chain finance will be
conveyed.

SMEs

SMEs Defined

There are differences among the definitions of SMEs when looking at past literature.
However, the size of countries and their level of economic development is an important factor
when defining SMEs. Hence it can be said that rather than defining in a legal aspect,
economic meaning has more bearing on the term (Keskin et al., 2010).

Looking at the various definitions from an institutional perspective, some have placed more
emphasis on the number of employees, but others have focused on aspects such as enterprise
turnover, sales volume or size of loans. Some of the definitions mainly used comes from both
the World Bank and the European Union. In the European Union an enterprise is regarded as
a small enterprise if it has less than 50 employees and has a turnover below 10 million Euros.
However, if an enterprise has less than 250 employees and has a maximum turnover of 50
million Euros, it can be classified as a SME. World Bank definition is slightly different when
compared to the European Union. An enterprise that has staff less than 300 and an annual
turnover below 15 million dollars (US) is classified under an SME (Ahmed and Chowdhury,
2009).

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SMEs as Part of Supply Chains

Companies are now focusing more on the management of their supply chains in order to
lower their operating expenses, improve their levels of customer service and to, therefore,
gain more strength and competitive advantage. By focusing more on supply chain
management these companies can gain up to 80% improvement in utilizing their capacities,
accuracy of their forecasts and inventory reduction (Cross, 2000). Other benefits of
effectively managing supply chains includes the improvements in product and process quality,
and competencies such as; more innovative new product designs, and process innovations
(Bask and Juga, 2001; Vaaland and Heide, 2007; Arend and Wisner, 2005).

However, these benefits are not always valid. In the case of SMEs, it can turn into increased
costs, greater hazards and unpredictable challenges. The reason for this was mentioned in past
literature as firstly the way SCM was implemented, then on the SME strategy. Both large
enterprises and SMEs were said to implement SCM differently, large enterprises focusing on
the management of the networks more deeply, which causes the supply chain to extend, and
performance to improve (Arend and Wisner, 2005). A study conducted by Quayle (2003)
points out that there are power relationships within supply chains where SMEs see it as a one-
way process. The stronger party will always win and that is most often not the SME. Also
within the same study it is mentioned that the relationships SMEs form with their customers
are usually at arm’s length, SCM is not implemented by SMEs, and that they can be easily
replaced when failed (Quayle, 2003). There are studies to indicate that the structures found
within supply chains are the reasons for the lack of implementation for the case of SMEs. An
example to these structures are the inventory reduction issues which effects the physical flow
within the supply chain and will cause changes in activity structures. These SMEs differ from
their large counterparts in that the formalize planning and control systems, upstream
integration, and vendor-managed inventories are not as important, which concludes that SMEs
focus their importance on areas other than the SCM control and implementation (Vaaland and
Heide, 2007).

Supply chain partnerships are also an important issue when discussing the role of SMEs
within the supply chain and how they are part of this network. With the effective
implementation of SCM, long-term supply chain partnerships can be established within the

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members. Looking at previous studies conducted on the area, some actually point out the
positive relationship between collaborative partnerships and company performance (Rezaei et
al., 2015; Li and Lin, 2006; Srinivasan et al., 2011; Wisner, 2003; Nyaga and Whipple, 2011),
while others that are focusing more on the SMEs indicate the opposite saying that
partnerships can have negative effects on SMEs performance (Koh et al., 2007; Arend and
Wisner, 2005).

The importance of SMEs

The role of SMEs is unquestionable within the supply chains as they are seen to be important
suppliers of services and materials. This importance and their role within supply chains is
given in the previous section together with their attitudes towards managing their supply
chains and the relationships they form. However, their importance must also be discussed.

Majority of the SMEs that are established are acting as the sources of such services and
materials as well as ideas and processes that their developed counterparts are not willing to
provide. SMEs reason to provide such sources is to stay in the market and survive through
cost advantages that economies of scale will bring. Studies show that these enterprises have
taken significant positions both within supply chains and also in the economic growth and
development of countries (Abbasi et al., 2018). If looked all the way back to the 1980s,
especially in Europe, the rate of unemployment was observed to be falling when compared to
a timeframe from 1945 to 1970s. The reason for this was pointed to the fact that the number
of SMEs had tremendously increased during those years (Keskin and Şentürk, 2010). Study
by Stefanovic et al. (2009) indicated that in the beginning of 2000s, in the European Union,
almost 99% of the enterprises were SMEs, which took up 67% of the total employment share
in the region. Again, data from the World Trade Organization indicates that SMEs make up
90% of businesses in developed economies, providing employment for 60% of their
population and making up 55% of their GDP (World Trade Report, 2016). Hence, SMEs are
referred to as the backbone of economies (Abbasi et al., 2018).

Another point to consider when discussing the importance of SMEs is that besides providing
sources for most companies, SMEs actually have more flexible structures because they do not
have large cash to make big investments, and therefore will not be able to put forward huge
amounts of money to obtain machinery, tools, or labor (Keskin and Şentürk, 2010). Because

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of this previously studies refer to SMEs as mainly agricultural based or as low-tech and
ordinary enterprises. However, in recent studies the focus of SMEs is more varied ranging
from agriculture to more non-conventional administrative areas. Policy makers are focusing
on SMEs and particularly on their development to increase the standards of living in countries
and eliminate poverty (Temelkov et al., 2018).

Financing Needs of SMEs

Theories and principles concerning both the capital structure and the choice of financing that
apply to large enterprises most often applies to SMEs as well. Research shows that these
theories and principles can be explained under two headings. First is the use of trade-off
choices, which includes vulnerability to bankruptcy and agency costs as opposed to benefits
of using debt financing. Second is the pecking order hypothesis (Cittenden et al., 1996; Cassar
and Holmes, 2003).

When there is an even slight chance that the company might default on their payments, then
there will be bankruptcy costs incurred, which then translates into liquidation costs. Although
sounding similar these two costs are actually different from one another. Liquidation costs are
found under bankruptcy costs and it takes place when the net assets of the company are
liquidated and there is a loss of value. Loss of value means that the company will have less
cash and payments to lenders will be much lesser in the event of insolvency. Credit lending
institutions do not favor the situation and will offer debt at a higher cost depending of the risk
level. Therefore, capital structure of the company will be affected; high cost of external
financing will make it less attractive despite the tax benefits it provides (Cassar and Holmes,
2003). Under the second heading, the pecking order theory, companies will try to meet their
financing needs in a certain order: first through internal funding sources, if not met, then
through debt, and lastly through external equity (Myers, 1984). However, among all of these
financing choices, the relative cost of finance will differ because information asymmetries
exist between the enterprise and the finance provider. Sometimes, owners of SMEs can be
ignorant of the financing problems of the enterprises, and therefore, will have trouble trying to
solve them. This will cause a difference in the costs of different financing options for these
companies.

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There are numerous studies available on the barriers SMEs face that hinders their
development (Levy, 1993; Pissarides, 1999; Pissarides et al., 2003; Beck, 2007). Research
shows that the major challenges that SMEs face in financing can be described as: the limited
access to financing options, tax rate, competition, electricity, government interventions, and
other political factors (Wang, 2016). Although there are many more barriers such as the ones
listed, perhaps the most important one for the development and growth of SMEs is their
limited resources for raising the necessary funding (Rupeika-Apoga, 2014). SMEs tend to
face severe credit conditions such as high interest rates, short maturities, and high collateral
request when compared to larger enterprises (OECD, 2012). This problem is usually
heightened with the perception of the banking sector on the SMEs sector. These enterprises
face challenges other than financing, such as protection of property rights, infrastructure
provision, inefficiencies in regulations and taxations as well as corruption and political
(in)stability within the countries they are located and all of these factors will limit their access
to bank funding no matter how profitable the SME can be (Temelkov et al., 2018)

Alternative Financing Resources for SMEs

There are few different ways companies can raise the necessary funds for their investment
decisions. This is basically a decision of whether the company wants to use debt in the form
of loans, etc., or if it wants to issue shares to increase equity. In the 20th century it was seen
that companies tended to favor bank loans as it was convenient and less risky. However,
research indicates that, since the 1980s companies tended to focus more on borrowing from
the capital markets because it is known to be less costly, due to lesser interest charges. This
was more the case in the United States, whereas studies focusing on Europe still showed that
the popular form of financing for companies were debt which mainly took the form of loans
and overdrafts from banks as well as trade credits and venture capital. However, the situation
with the SMEs was slightly different. A 2013 report showed that the amount of bank loans
and bank overdrafts given to SMEs were in an incline (ECB, 2013). Banks are usually
unwilling to provide finance to SMEs because of higher costs associated with small and
frequent SME loans as well as being unable to adequately assess their creditworthiness due to
lack of information regarding these enterprises. Also lack of collateral possessed by SMEs
and the need for banks to maintain higher reserve capital, all limits the access to financing.

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All of these reasons provide grounds to limit SMEs from growing as they will lack sufficient
funds to develop. Therefore, they are in search for newer, cheaper and quicker alternative
methods of financing.

The global financial crisis of 2008 has become a time that is marked with many changes
taking place worldwide, whether they are regulatory, or technological or even sociological. It
was also a time where innovations regarding financial products and services showed an
increase. It was firstly the technological developments that formed the base for the
introduction of number of alternative financing models. These models became an attractive
solution for those enterprises that needed funds but were unable to obtain from traditional
methods. Advantages to SMEs included faster loan approvals, acceptance of small loans, and
lower costs for both transactions and for the financing. Among these were methods such as
peer to peer lending, crowdfunding and invoice trading together with many fintechs
(Temelkov et al., 2018). However one of the most popular methods of financing for SMEs is
said to be supply chain financing methods. This concept of supply chain finance and its
relation with SMEs will be discussed in the following sections of this study.

Determinants of SME Financing

The previous sections have pointed out the increasing interest in the topic of SMEs and their
access to finance among academics, policy-makers and also investors. This interest has
increased even more with the 2008 global financial crisis and now with the COVID 19
epidemic. Studies have looked at different types of alternative financing methods over the
years. However, a point to keep in mind is that the effect of these cannot be investigated
separate from one another. SMEs are not smaller versions of larger enterprises and they differ
in many areas (Cressy and Olofsson, 1997), including ownership and financing structures
(Cittenden et al., 1996; Michaelas et al., 1999). Financial decisions are based on a range of
social, behavioral, and financial elements and this makes it a complex process (Moritz et al.,
2016).

SMEs demand for finance and their access to it depends on number of different factors based
on the enterprise, its products, and the industry it is located (Cittenden et al., 1996; Michaelas
et al., 1999). Firm’s specific characteristics can be listed as its size, age and ownership. All of
these factors were found to have an impact on the ability of the SME to obtain financing

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(Romano et al., 2001; Moritz et al., 2016; Cassar and Holmes, 2003; Chavis et al., 2011).
Some of the studies found that the smaller the company, the harder it will be to obtain
financing. This is pointed out to the fact that resolving information asymmetries will be more
costly and together with high transaction costs it will create more barriers for SMEs (Cassar
and Holmes, 2003). If these companies are younger or if they are more innovative, then they
will be classified as risky and it gets even harder for them to obtain financing (Moritz et al.,
2016). Some studies focuses on the industry types and it can be concluded from these studies
that companies located in different sectors have different types of assets with different levels
of risks attached, and also have different external capital requirements. Hence, companies in
different industries will generally have different capital structures (Harris and Raviv, 1991;
Hall et al., 2014).

Other factors that affect the capital structure of SMEs include their asset structure,
profitability, risk, and growth (Cassar and Holmes, 2003; Moritz et al., 2016).

However, studies that makes these connections between capital structure and company
characteristics only makes these comparisons based on equity or debt financing, i.e.
traditional methods of obtaining finance. They tend to neglect the various alternative
financing methods that exist. The use of these various methods changes as the company goes
through the different stages of its business cycle. According to a study by Berger and Udell
(1998) 70% of companies that were both young and small relied upon funding from the
owners, commercial banks, and trade creditors. There are also other studies which oppose this
view and show that these young and small companies have difficulty in getting bank finance
and hence, look for different sources of capital (Moritz et al., 2016). One of these sources is
the use of supply chain financing solutions. All companies, SMEs in particular, need cash to
survive in the ever-changing environment and will focus their strategies on improving their
working capital. Through supply chain finance instant credit is supplied and working capital
is improved. It provides both cash to SMEs and gives them flexibility in their operations.

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The Developing Concept of Supply Chain Finance

From Supply Chain Management to Supply Chain Finance

The competition that takes place between companies is now leaving its place to the
competition among supply chains. Therefore, in last couple of decades, supply chains are
moving from the basic customer–supplier relationships towards strategic collaborations
between supply chain actors. As more entities are becoming involved in the relationship, the
need for supply chain management becomes crucial.

There are different types of flows that exist within the supply chains. These are the
information flow, the product or service flow, and there is the financial flow. Both the
information and the financial flows together are referred to as the financial supply chain and
the product or service flows are referred to as the physical supply chain. Financial supply
chains are mentioned in studies as the chain, which tends to assist the physical supply chains.
They assist through establishing the coordination of information flow on products, services
and even payments, and also streamlining the existing financial flows. However, the focus has
been mainly on the physical supply chains, to make it more efficient, and in the mean time the
financial supply chains become neglected. But the importance of financial flows within
supply chains has become one of the most researched areas within supply chain management
in recent years.

Supply Chain Finance Defined

Looking at supply chains in the context of finance and the flows that take place between
suppliers and customers there comes the confusion between the financial supply chain
management and the supply chain finance terms. Researchers have taken different
perspectives on the two terms, which leads to different versions of the definition of supply
chain finance. Hence, there is still no clear definition that is written, but it is possible to refer
to it as a solution to extend payment terms to buyers and give an opportunity for early
payment to suppliers in order to create a win-win solution for both parties (Tanrisever et al.,
2015).

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Confusion comes from the fact that SCF in a broader perspective is written in literature as a
system or a solution that is responsible for the management of the financial flows within the
supply chain, in other words the financial supply chain management, to increase the cash flow
and to lower the cost of obtaining capital (Pfohl and Gomm, 2009; Gomm, 2010). According
to Kleemann (2018) the definitions of supply chain finance can be classified under three
different levels starting from a broader and moving towards a narrower perspective: financial
supply chain management, supply chain financing, and buyer-centric supplier payables
financing solution. Therefore, this provides an explanation as to why the term supply chain
finance is defined as managing the financial processes and supply chain financing approaches,
in short, the financial flows within the supply chain in some of the studies (Hofmann, 2005;
Pfohl and Gomm, 2009; Gomm, 2010) while it is referred to as a set of instruments to manage
the financial supply chains (Camerinelli, 2009). On the other end of the spectrum, supply
chain finance is defined as reverse factoring found under the buyer-led payables solutions
(Kleemann, 2018).

Study conducted by Gelsomino et al. (2016) states that in SCF literature there are both finance
and supply chain oriented perspectives where one treats SCF as a tool for financial solution
and the other as a collaboration among the members of the supply chain which makes it more
difficult to get a clear picture of what SCF is. Also, in their study, they emphasize that SCF
solutions will lower a company’s cost of debt, provide them with more options to obtain funds
and also reduce the working capital. This is most important for weaker members of the supply
chain, such as the SMEs. Caniato et al. (2016) also points out that there are three areas
companies can benefit from if they adopt SCF solutions. These areas being: firstly, as
mentioned previously in Gelsomino et al. (2016)’s study, to reduce the net working capital,
secondly to increase the profit, and lastly to add strategic benefits to the company.

Supply Chain Finance Solutions

According to the definitions of SCF explained above, one classification actually focuses on
the different instruments or solutions developed to manage the financial flow within supply
chains. These instruments or solutions can be classified under three different headings: the
first one being the supplier –led SCF schemes, second one is the buyer-led SCF scheme, and
lastly, the third is the inventory-led SCF schemes (Wuttke et al., 2013).

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From these schemes, supplier – led SCF solutions, also referred to as receivables financing, is
the most mature one as it covers approximately 60-70% of the market share and includes
solutions such as factoring, forfaiting and invoice discounting. It is considered as the first
wave of growth in the development of supply chain finance. There are, however, limited
number of studies including SMEs and the supplier led solutions. How supplier-led solutions
work is very simple and is attached to the company’s (often supplier’s) receivables. Basically
suppliers can use their receivables (it could be from one or more buyers) and use it to obtain
early payments, usually at a discount. As mentioned there are different types of solutions
under receivables financing in which the receivables are either sold, assigned, or discounted
depending on the type chosen.

Then, with the increase in the number of multinational companies, more focus was placed on
the integrity of supply chains. The vast amount of cash held by these companies and the
increase in the number of platform providers and markets brought the second wave of SCF
development, the introduction of buyer-led SCF solutions, also referred to as the payables
finance. As much as the financial institutions, buyers probably have one of the greatest
interests in the financial well being of their suppliers as they want their goods and services on
time and with the lowest cost possible. For this reason, buyers use their own credit standings
to lower the cost of capital and provide an earlier payment option for their suppliers. Under
this scheme there are few different solutions: reverse factoring (also referred to as Supply
Chain Finance), dynamic discounting, and reverse securitization being the major ones. This
payables financing came about after receivables financing and hence, is not as mature,
covering only approximately 15-20 percent of the market share. Although payables financing
is similar to receivables financing as they both make sure the suppliers receive payment
before the invoice due date, there are some differences among them. In buyer-led SCF
solutions, an invoice or an account payable is received by the supplier at a discount. The
buyer initiates it, they are the ones who choose and approve the relevant invoice or account
payable.

The rest of the market share is covered by other supply chain financing solutions such as,
inventory –led financing or pre-shipment finance, which is not as widely used as the other two
schemes and used only in certain industries, and commodity markets. The last wave, the third

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wave of SCF development took place with the introduction of new analytic-driven solutions
and the increase in digitalization where both the buyer and supplier-led solutions are
converged together (Euro Banking Association, 2014).

SMEs and the Use of Supply Chain Finance

According to Zhu et al. (2019), between the years 2011 and 2013 the annual growth rate of
SCF had been around 30 to 40% internationally. It was also expected, in this study, that this
rate of growth would fall approximately down to 10% by the 2020s as the market matures.
Whether this hypothesis hold or not was not researched again and it is still a question mark.
However, the COVID 19 pandemic is said to have affected the industry as well with
especially SMEs needing more cash than ever before. With the start of the pandemic, within a
short time span countries began to place travel restrictions, they have closed borders and also
imposed lockdowns. These restrictions, however, came with a cost. Since March 2020, supply
chains, economies, and international trade were seriously affected (Aslam et al., 2020).
During the crisis SMEs were greatly affected as managing their working capital became more
difficult. Their cash problems started turning into solvency problems. Hence, major events
such as crises, wars, pandemics, etc. all add to the financing problems faced by SMEs. For
this matter, utilizing supply chain finance solutions are said to protect these enterprises in
uncertain and unpredictable changes in the market.

SMEs and SCF topics were linked together in different ways in past studies. First of all,
majority of the studies focus on the fact that SMEs are experiencing financing problems and
they need alternative sources. Pfohl and Gomm (2009) showed that coordinating both the
physical and financial flows have been the primary challenge of SMEs indicating the
importance of adapting SCF into the supply chain network. Liebl et al. (2016) indicate that the
power relationship among the actors within the supply chain finance ecosystem is an
important determinant in the successful adoption of the SCF system. Relationships that exist
between the buyers and their suppliers must be balanced in terms of power, which brings the
importance of good negotiation among them into the picture.

Having mentioned the need for good relationships, balanced power, and negotiation skills,
these together point to the fact that collaboration becomes essential between SMEs and both
their buyers and suppliers. Past studies show that strong collaboration within the supply chain

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creates competencies, resources, and efficient procedures, which enhances the performance of
SMEs (Gammelgaard and Mathiasen, 2007; Zacharia et al., 2009; Piboonrungroj and Disney,
2015). Therefore, collaboration among the SCF actors leads to reduced costs and have
positive effect on the whole SCF process. Randall and Farris (2009) explain that commitment
and trust between the supply chain actors is improved using SCF. Study by Lekkakos and
Serrano (2016) focuses on reverse factoring and show that SMEs utilizing this technique both
increases the operational performance of suppliers and optimize working capital.

Then there are studies directly focusing on transaction costs. These costs together with lack of
transaction history limit SMEs’ ability to get funds from banks and other financial institutions
(Song and Wang, 2013). However, introducing supply chain finance solutions work to
minimize these costs and provide financing involving lesser risk for the parties involves.
Supply chain financing in the context of reverse factoring works as a buyer-led financing
solution where the buyer actually uses its own credit score in order for the supplier, who
usually are the SMEs, to obtain funding at a lower cost, any time before the invoice is due to
be paid and hence reduces the risk for the suppliers (they will not have to worry about
whether they are going to receive the payment or not), the financial institution (they will only
provide the fund if the buyer has a good reputation and a high credit score) and also for the
buyer (the buyer will eliminate the risk of their suppliers going out of business).

Overall, supply chain finance itself is still an area that has not matured yet and is still facing
many challenges. While applying different SCF solutions to improve the performance of
SMEs and eliminate the problems they are facing, it must not be forgotten that SCF
ecosystem is changing. Companies must analyze, interpret and measure the interaction
between various factors of adoption related to SCF. SMEs tend to miss this step when they are
making long and short term strategic plans.

Conclusion

At the beginning of the study, it was discussed that cash holds a very important part within
companies and their supply chains. Companies needed to establish the optimum amount of
working capital in order to conduct their day to day operations. If this is not the case and
companies lack the adequate working capital, they face the challenge of surviving in this ever
changing environment. SMEs are the types of enterprises that mainly get affected by this

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situation. Often they look for new and better ways of financing to continue their existence.
However, this is an area that is still new and more research needs to be conducted. Therefore,
aim of this study was to put forward the general concepts of SCF and to discuss how SCF
solutions affect the supply chain operations of SMEs in light of previous studies.

Literature on SMEs and SCF point out that the solutions mentioned above all had an impact
on the way SMEs are obtaining resources to finance their operations and to eliminate the
bottlenecks they are facing. It is known that it was hard for SMEs to obtain financing due to
their size, short operating histories, credit scores, high levels of risk, incomplete financial
statements and even the lack of power they have against their big buyers. The traditional
method for obtaining resources had been to seek financing from commercial banks or other
financial institutions. But, especially with the global crisis of 2008, the pressure of obtaining
finance had increased for these companies pushing them to discover new solutions (Lekkakos
and Serrano, 2016). They either could not obtain or even if they could it was too expensive.
Among a variety of solutions, the introduction of SCF solutions helped SMEs to get their
payments earlier, reducing their risk levels and helping them to achieve their development
targets on time (Zhu et al., 2019).

The findings of the study clearly indicates that in recent years the focus on alternative
financing models had increased due to increasing world trade, globalization and higher levels
of risk and competition faced by the companies. Supply Chain Finance is an important
financing method for both suppliers and buyers as it is seen to benefit both sides of the trade
while lowering costs in the process. Buyers will have the option of paying later, holding their
cash and utilizing it in the meantime, while suppliers will have the option of getting paid
earlier, in exchange for a small fee, and improve their working capital holdings. Especially on
the topic of SMEs there is still lack of research and evidence to make a clear conclusion.
However, as numbers of studies increase in time the gaps in research will be fulfilled.

Discussion

Finding of the study clearly indicates that there are differences in the way SMEs and larger
enterprises operate. An important difference between them is the way of obtaining funding to
manage the working capital and also for their short term and long terms investments. The
reason for this can be the different organizational structures they hold. This becomes an

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important question for all: if SMEs lack the organizational structure to support changes and
have trouble in the planning and implementing, how will they cope with the new alternative
financing techniques? It will be even harder for them to adjust their structures for these new
models.

Although this study has focused on placing forward the financial difficulties faced by SMEs
and the adoption of supply chain financing solutions by them, more studies are needed to
evaluate the SCF adoption process of these SMEs and how they can be improved. Probably
looking at vertical and horizontal partnerships, or the utilization of IT solutions can be a way
to mitigate the problems taking place due to information gaps that exist within their supply
chains.

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D'avanzo, R., Lewinski, H. V., & Wassenhove, L. V. (2003). The link between supply chain
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Turkey's Ecopolitica and Foreign Trade in the COVID 19 Process


Asena BOZTAŞ, Turkey


Dilşad TÜRKMENOĞLU KÖSE, Turkey

Abstract

Turkey was also hit as the whole world in the spring of 2020 and negatively affect many
aspects of the pandemic (Covidien 19) Foreign trade is the backbone of the process of
Turkey's economy is adversely affected. This situation has penetrated from the decline of the
Turkish lira in international markets to the purchasing power of the citizens in the country.

In the study, there will evaluated that Turkey's ecopoliticas with similar adverse conditions all
over the world, foreign trade, financial situation and will assess the socio-political
perspective.

In the study, which also includes the analysis of statistical data, all elements of the current
pandemic process will be considered as much as possible. In the study, firstly, the literature
review method will be used and then comparisons will be made with current-historical data
analysis.

Keywords: Covid 19, Ecopolitica, Foreign Trade, Turkey, pandemic


Jel Codes: F10, F50, I15, I18


Assoc. Prof., Sakarya University of Applied Sciences, Faculty of Applied Sciences, International Trade and
Finance Department, aboztas@subu.edu.tr

Faculty Member, PhD, Sakarya University, Faculty of Political Sciences, Department of Public
Administration, dturkmenoglu@sakarya.edu.tr
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Covid-19 Process in International System and Turkey

With the transformation of Covid 19, which emerged in Wuhan, China in the spring of 2020,
into a pandemic by gaining international character Turkey and the Turkish foreign trade, has
taken a blow as in international trade. However, it can be said that the impact of Turkish
foreign trade has been partially less effective compared to other states in the international
system.

Turkey who is fighting Covid-19 while trying to stand in the international system
economically, at the same time especially support to the world in the field of health and
efforts to preserve the egalitarian prestige also intensifies in oil and gas exploration in the
eastern Mediterranean, the Syrian war and the entire trade with the world fairly and Africa in
pandemic process,

Turkey’s Ecopolitica and Foreign Trade in Covid-19 Process

After the establishment of Turkey has said “I am here”, always aimed to consolidate its
position with foreign trade. Turkish foreign trade, which has followed a fluctuating course
with positive and negative developments arising from internal and external dynamics in the
process, is struggling with the Covid-19 Pandemic that is being experienced today. 2020
constant foreign trade deficit that we look at Turkey's export-import data after 2010 apart
from “importation”, it is possible to talk about the effects of external dynamics rather than
internal dynamics until 2015. In particular, the impact of the civil war of Syria in 2011. Syrian
immigrants who flocked Turkey, has deeply affected the Turkey’s economy.

TÜİK 2019-2020 Foreign Trade Data

YEAR Export (Dollar) Import (Dollar)

2019 $180.832.721.702,00 $210.345.202.552,00

2020 $102.342.936.940,00 $135.347.376.068,00

Source: TUIK, 2020

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It is known that the biggest problem of Turkish foreign trade is the foreign trade deficit. When
examined one by one, the biggest cause of the foreign trade deficit is energy expenditures
(Özdemir, Yiğit and Oral 2016: 172). In order to be able to minimize these expenses, 2020 in
Turkey, together with the drilling of oil and natural gas exploration work in the eastern
Mediterranean, it is given to R & D activities in the field of technology. On the other hand
Turkey opens up new markets such as Africa and Latin America, aims to develop its foreign
trade.

Coronaviruse that makes feel the impact of itself, in the World and World economy in April
2020 was also affected Turkey's exports and imports. In this context, exports declined to 102
billion dollars and imports to 135 billion dollars in 2020. Turkey's foreign trade deficit rose to
$ 33 billion (TUIK, 2020).

It can be said that international trade took the biggest blow in the process where the countries
of the world closed their borders and quarantined themselves, and sanctions such as export-
import bans and travel ban were imposed on commercial activities. In parallel to Turkey
affected the situation was the same. Covid-19 due mainly to European Union countries,
important export large market and demand contraction and quarantine measures at the borders
of their countries, Turkey in April and the drop in exports in 2020 has been the main reason
(Birgün, 2020). On the other hand, the fact that the factories in China stopped their production
in the first periods of the pandemic meant that China was withdrawn from the commercial
scene in a way. Therefore, as China's production came to a halt, many sectors, especially the
global logistics sector, were adversely affected and many countries had to shift their
purchases to other countries. This situation caused the supply-demand balance to deteriorate
in supply chains. Countries have entered the quest for new alternative production locations
and Turkey was also one of the new quest (Ture, 2020). It is also the preference of Turkey in
the field of maritime transport logistics in Turkey showed a sudden increase in prices. This
trend continued even as oil prices fell rapidly (Yılmaz, 2020).

Turkey as well as in the entire international system, there is demand and demand blind sectors
in the pandemic period. Sectors that are in demand in the pandemic; agriculture, basic food,
food packaging, chemistry (hygiene and cleaning group), health and medical, food retail, e-

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commerce, logistics and distribution. The sectors that are not in demand in the pandemic;
Tourism, accommodation, travel, restaurant management, merchandising, arts and
entertainment, events, construction and real estate, building materials, furniture, clothing and
fashion, automotive, and various service sectors (Yılmaz, 2020).

Covid-19 has negatively impacted countries in many areas, from the travel industry to
suppliers. So much so that the loss in all international trade is predicted to be 1.7 trillion
dollars (Güden and Koç, 2020). In order to prevent this situation, it is predicted that national
protectionist policies in international trade may increase (Zengin, 2020). On the other hand,
after Covid-19, trade in the world may become easier, digital processes can accelerate and
bureaucracy may decrease (KPMG, 2020).

In the report of the World Trade Organization dated April 8, it was stated that it expects
global trade to decline between 13% and 32% in 2020 (WTO, 2020). In this context, exports
decrease with the decrease in foreign demand in international trade, and imports decrease due
to the decrease in production and consumption due to the additional taxes on imports.
International demand created by the pandemic shifts and to changes in the supply chain can
occur which can affect positive opportunities for Turkey and Turkey's foreign trade balance.
On the other hand Turkey in quarantine measures due to the closure of businesses and
employment issues in tax revenues in the recession it has brought. In addition to these, the
budget deficit in the country has deepened with the increase in social expenditures. The
development of the external debt stock, which has been decreasing even if limited since 2019,
may arise as a result of many factors such as The current situation of international markets
and the cost of borrowing from these markets, current account deficit, financing the budget
deficit by domestic or foreign borrowing, the status of foreign direct investments,
expectations in interest, inflation and exchange rate levels (Adıgüzel, 2020: 218).

Turkey, geopolitical position and historical background with a very important place in
international trade, especially after its establishment in the 1920s, it turned its foreign trade
direction to the West (especially Europe) on the basis of geographical proximity. When
looking at the current Turkey's trade potential, even if too late great transformation in this
process, it is possible to observe that saw the biggest foreign trade partner of Europe. Turkey

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is engaged in the trade surplus with the European Union especially Germany. So much so that
even during the pandemic process, this situation has not changed.

2019-2020 Turkey's Imports in Country Groups

JANUARY-SEPTEMBER

% % %
2019 Dist. 2020 Dist. Dist.

153.88
TOTAL IMPORTS 5 100,0 156.186 100,0 1,5

A- EUROPEAN UNION CONTRIES (27) 49.237 32,0 50.016 32,0 1,6

104.64
B- OTHER COUNTRIES 9 68,0 106.170 68,0 1,5

1- OTHER EUROPE 26.276 17,1 24.601 15,8 -6,4

2- AFRICA 4.454 2,9 5.401 3,5 21,3

North Afrİca 3.005 2,0 3.420 2,2 13,8

Other Afrİca 1.449 0,9 1.981 1,3 36,6

3- AMERICA 14.975 9,7 14.736 9,4 -1,6

North America 10.084 6,6 9.557 6,1 -5,2

Middle America ve Caribbean 675 0,4 739 0,5 9,5

South America 4.215 2,7 4.440 2,8 5,3

4- ASIA 47.105 30,6 50.523 32,3 7,3

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Near and Middle East 12.419 8,1 15.311 9,8 23,3

Other Asia 34.686 22,5 35.212 22,5 1,5

5- AVUSTRALIA VE NEW ZELAND 790 0,5 347 0,2 -56,0

6- OTHER COUNTRIES AND REGIONS 11.048 7,2 10.561 6,8 -4,4

SELECTED COUNTRY GROUPS

OECD Countries 71.577 46,5 74.204 47,5 3,7

EFTA Countries 2.541 1,7 5.107 3,3 101,0

Black Sea Economic Cooperation 24.728 16,1 19.909 12,7 -19,5

Economic Cooperation Organization 6.178 4,0 3.191 2,0 -48,3

Commonwealth of Independent States 19.640 12,8 15.060 9,6 -23,3

Turkic Republics 2.495 1,6 2.096 1,3 -16,0

Organization of the Islamic Conference 19.969 13,0 23.061 14,8 15,5

D-8 Developing Eight Countries 7.865 5,1 5.077 3,3 -35,4

Source: TUIK, 2020

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2019-2020 Turkey's Exports in Country Groups

JANUARY-SEPTEMBER

% % %
2019 Dist. 2020 Dist. Dist.

TOTAL EXPORTS 132.793 100,0 118.325 100,0 -10,9

A- EUROPEAN UNION CONTRIES (27) 57.108 43,0 48.931 41,4 -14,3

B- OTHER COUNTRIES 75.684 57,0 69.393 58,6 -8,3

1- OTHER EUROPE 17.740 13,4 16.603 14,0 -6,4

2- AFRICA 12.044 9,1 10.889 9,2 -9,6

North Afrİca 7.786 5,9 6.567 5,5 -15,7

Other Afrİca 4.258 3,2 4.322 3,7 1,5

3- AMERICA 9.969 7,5 10.294 8,7 3,3

North America 7.306 5,5 7.991 6,8 9,4

Middle America ve Caribbean 1.316 1,0 1.042 0,9 -20,9

South America 1.347 1,0 1.261 1,1 -6,4

4- ASIA 35.153 26,5 30.687 25,9 -12,7

Near and Middle East 25.327 19,1 21.986 18,6 -13,2

Other Asia 9.826 7,4 8.701 7,4 -11,4

5- AVUSTRALIA VE NEW ZELAND 569 0,4 578 0,5 1,5

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6- OTHER COUNTRIES AND REGIONS 208 0,2 343 0,3 64,8

SELECTED COUNTRY GROUPS

OECD Countries 73.664 55,5 66.003 55,8 -10,4

EFTA Countries 1.293 1,0 1.267 1,1 -2,0

Black Sea Economic Cooperation 14.658 11,0 14.234 12,0 -2,9

Economic Cooperation Organization 6.311 4,8 5.935 5,0 -6,0

Commonwealth of Independent States 6.785 5,1 7.038 5,9 3,7

Turkic Republics 3.648 2,7 3.853 3,3 5,6

Organization of the Islamic Conference 35.268 26,6 30.704 25,9 -12,9

D-8 Developing Eight Countries 6.223 4,7 5.140 4,3 -17,4

Source: TUIK, 2020

Considering the 2019-2020 foreign trade data, Turkey’s international trade, possible to say
that at least partly directed to Asian American and African markets. In this context, during the
pandemic process, Turkey's foreign trade leaps that have been made to stand economically
and search for new markets are admirable.

Until recently, we saw that every country was trading with its close neighbors and regions, as
logistics costs are important in international trade. However, with the acceleration of
technology, the increasing share of e-commerce in international trade has enabled the
warehouse and warehouse expenses to be minimized together with logistics costs. China has
lowered its labor cost and directed international capital to its home country. Thus Turkey,
although the largest portion of the trade is still to whether carrying with Europe, as can be

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understood from the TUIK data obtained on a yearly basis, it also opens to Africa, Latin
America and Asia markets and tries to keep its hinterland wide.

Suggestions for the Development of International Trade in Turkey and Foreign Trade
and Conclusion

Turkey's primary objective should be increasing market shares in alternative markets and
especially export potential in order to realize an effective and efficient foreign trade in the
global world. In addition, if there are any obstacles to Turkish foreign trade such as taxes,
quotas, etc., bureaucratic and procedural comfort should be provided through high-level
meetings on a country basis. In particular, Turkey; In the trade with African and Latin
American countries, it should be able to demand practices that are equivalent to the initiative
practices shown in the post-colonial order to the former colonial powers, within the win-win
principle. Thus, a Turkish firm doing business in Rwanda does not have to find a British firm
partner to maximize its profits. Or similarly, a Turkish firm that will trade with the Central
African Republic or the Democratic Republic of Congo does not feel obliged to find a French
partner.

On the other hand, effective processes and controls in the health pandemic striking
mechanism of Turkey in the international platform, able to transform the economic potential
in the health sector as a trade off. Likewise, with its quality in areas such as logistics, textiles,
etc., the preferred country in the pandemic process should further strengthen its position and
influence.

As a result, together with the production of goods and services, the presence of Turkey can
use its geostrategic position where effective, is capable of minimizing the foreign trade deficit
during and after the pandemic.

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%20Ticaret,

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Relations Between Turkey and The Turkish World in The Globalization Process

Dilşad Türkmenoğlu Köse, Turkey

Sakarya University, Faculty of Political Sciences

Asena Boztaş, Turkey

Sakarya University of Applied Sciences

Abstract
As a process in which Liberal democracy, free market economy and cultural differences gain a
universal dimension by coming to the fore, globalization deeply affects the domestic and foreign
policies of states. The fact that it covers the universe as a process rather than a phenomenon now
seems as broad as the inclusiveness of the spheres of influence of globalization, which take its place
among academic admissions. Due to the wide and diverse areas of influence from the everyday
lifestyles of individuals to the domestic and foreign policies of states, this study mainly tries to
evaluate the economic dimension of globalization. As a matter of fact, global developments that
continue as a process all over the world do not leave the Turkish Republics out of their area. Given the
breadth and diversity of this sphere of influence and the economic dimension of globalization, all
paths coincide with foreign political processes and the conditions of a free market economy.
Therefore, one of the main conditions for the successful continuation of the globalization process,
which is inevitably expressed, can be defined as regional cooperation, regionalization. The study
focuses on the necessity of developing economic cooperation between the Turkish republics in the
process of globalization. In this direction, in the first part of the study, the concept of globalization is
included in the theoretical framework, while in the second part, it was tried to determine where Turkey
is in the globalization process. In the last part of the study, the importance of cooperation between
Turkey and the Turkish Republics, which can be created and increased by existing ones, was tried to
be identified. Results of the study in the globalization of the Turkish world in more regional
collaborations, in addition to taking up more space on the affected side in Regional Economic has
highlighted the necessity of establishing a union.

Keywords: Globalization, Economic Dimension, Turkish World, Free Market, Foreign Policy.
Jel Codes: F01, F15, F50, F59.

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Globalization in Theoretical Framework

Globalization, as a process where liberal democracy, free market economy and cultural
differences gain a universal dimension by coming to the fore, deeply affects the domestic and
foreign policies of states. The fact that it covers the universe as a process rather than a
phenomenon seems to be as broad as the scope of the domains of globalization, which is now
among the academic acceptances. It is known that globalization has a wide range of effects
from the daily life styles of individuals to the foreign policies of states.

In its simplest form, “globalization can be defined as the increasing degree of communication
and interaction between people, societies and states living in different parts of the globe
within the framework of the concept of“ mutual dependency ”(Bayar, 2008: 24).

While this reciprocity brings societies closer to each other, it enables the existence of different
actors other than the state to take their place in globalization. The concept of globalization
was used for the first time in an article written by the British Economist W.Foter in 1833 on
the distribution and use of resources in the world, and later appeared in The Economist
magazine on April 4, 1959 (Karabçak, 2002: 116). Even though the origin of the word
"global" as a concept goes back 400 years, "globalization" is quite new. The concept of
globalization, which first emerged in the 1960s, has been used frequently in the 1980s. In the
1990s, it has become a key word that scientists acknowledge its importance (Bozkurt, 2000:
18). The IMF (2002) defined globalization simply as "trade and finance integration" in its
report "World Economics Outlook". The World Bank defined the "Globalization Process" as
the ongoing integration of economies and societies in the world in its report "Globalization,
Growth and Poverty" (2002) (Hablemitoğlu, 2004: 36). Although it is possible to increase
these definitions, their common feature is showing the economy as one of the pillars of
globalization. After the Second World War, the international capital circulation of most
countries was subject to strict control. One country has chosen to follow import substitution
policies. It is seen that the IMF and the World Bank emerged for the purpose of developing
international trade in this environment where private capital circulation is limited. It can be
said that international capital movements accelerated in the period of Reagan and M. Thatcher
in the early 1980s, which was seen as the victory of globalization. Especially with the collapse

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of the Soviets in the early 1990s, almost every field of informatics and communication started
to become global, especially the economy.

Finally, with the collapse of the Bretton Woods System in August 1971, the fixed exchange
rate system was abandoned and developed countries lifted restrictions on capital movements.
The removal of restrictions on capital movements has gained extraordinary momentum with
financial globalization. In this context, four main actors can be mentioned: Nation-state,
international organizations and supra-state institutions, local governments and non-
governmental organizations. The globalization process is shaped by the mutual
communication and interaction of these actors. Although the economic dimension of
globalization is highlighted in this study, it should be evaluated as a whole with its cultural,
political, economic, communicative and economic dimensions.

The dimensions of globalization also affect the approaches against globalization. It is possible
to classify globalization approaches as extreme globalizers, anti-globalization and skeptics. In
this context, extreme globalizationists who are in favor of globalization emphasize that
globalization is inevitable and start from the speed of development of informatics and
communication. It is inevitable that communication technologies that are making such rapid
progress will bring the world closer together. According to extreme globalizers, globalization
refers to a new era in the history of humanity, when traditional nation states lost their
characteristics and even became a dysfunctional unit in the global economy. Extreme
globalizers emphasize that economic globalization disrupts the structures of national
economies by creating international production, trade and finance networks. In this boundless
economy, local governments have become involved in the transfer of transactions between
global and powerful institutions. Many extreme globalizers acknowledge that economic
globalization has created new forms of social organizations through which traditional national
governments have been taken over (Held and McGrew, 2008: 14-15). Among the other claims
of extreme globalizers are that national borders and understanding of national identity will
disappear in time.

Skeptics, on the contrary of extreme globalization advocates, first started by questioning what
globalization is. In this context, they approach globalization with suspicion and emphasize
that it is just an illusion of space. Anthony Giddens used the concept of “skeptics” for those

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who see globalization as controversial from beginning to end (Giddens, 2010: 38). When it
comes to anti-globalization, the first names that come to mind are Naomi Klein and Noreena
Hertz. In addition, Paul Hirst, Graham Thompson, Joseph Stiglitz, Michael Hardt, Antonio
Negri are among those who criticize globalization to a large extent.

As the last approach, Giddens is at the forefront of ministers with a transformational approach
to globalization. Giddens thinks like him, transformationists see globalization as the main
force behind the rapid social, political and economic changes that reshape modern societies
and world order (Giddens, 2010: 42). Globalization, as the inevitable effect of time on the
world, is defined as an endless process for transformationists.

The phenomenon of globalization exists in almost every field from economy to art, from
science to communication. It is possible to say that the perspective of globalization as a
process or an event is shaped by globalization approaches. Another point regarding
globalization is that its economic dimension is settled in almost every area of life and has an
accelerating effect for the rest of globalization.

Globalization in Turkey

When we look at the impact of globalization on Turkey together with all sizes around the
world as it is in many countries it is said to be quite impressed at a high level. One of the most
important reason for this situation is Turkey's geo-strategic position. "Turkey, West and East,
North and South at a point where the invention is located in the center of Eurasia, is broadly
vulnerable to the effects of globalization" (Bay, 2008: 32).

However, with the economic transformations taking place in Turkey after 1980, then
abandoned the import substitution policy be monitored until it is observed that began to be
followed a policy of outward-oriented approach. When looking at the political dimension and
reflection of globalization; democratization, the rule of law, seen as human rights in the
forefront of universal values in the functioning of concepts such as the fight against terrorism,
illegal immigration, corruption, issues such as human trafficking in which Turkey is just not
enough of seeking solutions with national policies, regional and bringing solutions within the
framework of international cooperation and the importance (Kıvılcım, 2013: 228).

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Similarly, under the current political globalization trends, Turkey, in particular the recent
democratization, rule of law, human rights, transparency alongside issues such as the status of
women, the implementation of basic governance principles such as accountability and has
made great progress within the framework implementation. Naturally, in this process, it
becomes almost necessary for the Turkish people to carry out their development efforts on the
basis of universal values. In addition, it is generally accepted that the economic dimension of
globalization and free market conditions are out of the control of the states and the existence
of a market mechanism process that directs the economy in the international plan. As a result,
national economies have become more fragile and prone to crisis and many countries,
including Turkey, has been affected by this situation (Best, 2006: 211)

Finally, Turkey's unique history and is considered one of the most important example of inter-
cultural harmony of civilizations. In this sense, globalization and localization in Turkey poles
instead be handled as glocalization axis is one of the most important example of the enhanced
localization with globalization.

Cooperation will be created and the Importance of Increasing Existing Collaborations


between Turkey and the Turkish Republic Within the Global System

Regional cooperation, regionalization, which constitute the first stage and an important aspect
of globalization, maintain their importance in the 21st century. Namely, in the 90s of the 20th
century, NAFTA, the Asia Pacific Economic Cooperation Organization, MERKOSUR
(Argentina, Brazil, Bolivia, Paraguay, Uruguay, Chile) and the Organization of the Caribbean
States were organized and strengthened. The European Union (EU), which is the pioneer of
regional economic cooperation, has entered a new stage. In April 2001, Canada summit was
held, which announced the establishment of the Free Trade Customs Union zone in the
American continent. While global evolution necessitates new management models at the
national and sub-national levels, on the other hand, they have highlighted organizations that
take into account and protect countries at the supra-national level (Batmaz & İrmiş & Burak,
2011: 34-36).

Naturally, the ongoing globalization and regionalization all over the world do not exclude the
Turkic Republics, which have made great contributions to world culture with their rich
history. "The dissolution of the Soviet State has radically changed the geopolitical situation in

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a large geography covering 1/6 of the world. The Turkic Republics, which formed the Soviets,
including Azerbaijan, Kazakhstan, Kyrgyzstan, Uzbekistan and Turkmenistan, as well as
other republics, gained their independence and became candidates for a place in the global
system. The social and economic lives of these republics, which adopted the strategy of
establishing a market economy, have undergone profound transformation during the years of
independence. In all of these countries, the process of fundamental re-establishment of all
economic relations in the post-Soviet period began. The sovereignty gave these republics the
opportunity to enter the world market independently and to establish their own foreign
economic relations on the basis of new principles ”(Veliyev, 2009: 113). In this geopolitical
geography rich in energy reserves, where conflicts of interest are experienced by many
developed countries, the Turkic Republics are seen as the party that struggles not to disappear
in the globalization process. Therefore, regionalization movements parallel to globalization
processes can become much more important for Turkic Republics compared to other
countries.

In this direction, the Turkic Republics attach great importance to cooperation with the states
in the region. Here, regional economic integration develops in 4 main directions. 1.
Commonwealth of Independent States 2 Organization for Economic Cooperation and
Development (ECO) 3. Black Sea Cooperation Organization 4. economic cooperation
between the Turkish Republic of Turkey alone, especially the first two of these four aspects
were organized. The Republic of Turkey in the last two aspects are participating actively.
Each of these aspects has its own superiority (Veliyev, 2009: 103-110).

The process underway in the Republic of Turkey is seen as a reliable party for the Republic of
Turkey. For a long time in this country, an excellent foreign trade relations mechanism has
been established, export potential has been developed, an effective competition mechanism
has been created with enormous multinational companies, and rich experience has been
accumulated in globalization and integration in other fields. Just because of this need for the
development of the Republic of Turkey and the Turkish Republic of trade-economic relations
since the first years of independence they give great importance. The collapse of the Soviet
Union as an immense empire and gain the independence of the Turkish Republics, by the
nature of their relationship with Turkey has set the stage for a new phase. Lack of capital,

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technology and experience in these countries for the development of rich energy resources has
increased the interest of these countries in multinational companies and required multi-faceted
cooperation with them to realize enormous projects (Veliyev, 2009: 103-110).

4.Conclusion

The fact that it covers the universe as a process rather than a phenomenon seems to be as
broad as the scope of the domains of globalization, which is now among the academic
acceptances. It is known that globalization has a wide range of effects from the daily life
styles of individuals to the foreign policies of states. especially the functioning of the Turkish
Republic and links parallel to the globalization process between the Republic of Turkey has
tried to be analyzed considering the scope of this study. Look at the undeniable importance of
the peace that exists between Turkey and the Turkish Republic and was involved in the trust,
open the front of Turkish influence in the most positive aspect of globalization of the world
has been among the overall objectives of the study. In this context, among the results obtained
from the study, it was highlighted that the Turkic World is more affected by globalization and
the necessity of establishing a regional economic union within themselves, as well as taking a
more place in regional collaborations.

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References

BATMAZ, Nihat & Ayşe İRMİŞ & İbrahim DURAK (2011), “Küreselleşme Ve
Bölgeselleşme Sürecinde Türkiye Ekonomisindeki Gelişmeler (1980-2010)”, Cag University
Journal of Social Sciences, 8(1), June, 30.
BAYAR, Fırat, “Küreselleşme Kavramı ve Küreselleşme Sürecinde Türkiye”, Uluslararası
Ekonomik Sorunlar Dergisi, Sayı: XXXII, 2008,s.25-34.
BOZKURT, Veysel, (2000), “Küreselleşme: Kavram, Gelişim ve Yaklaşımlar”, (Der. Veysel
Bozkurt, Küreselleşmenin İnsani Yüzü”, Alfa Yayınları, Bursa).
ENER, Meliha, Demircan Esra (2006), “Küreselleşme Sürecinde Yeni Devlet Anlayışı ve
Türkiye”, Yönetim Bilimleri Dergisi, Cilt:4, Sayı:2, ss:198-218
GIDDENS, Anthony; Modernite ve Bireysel-Kimlik Geç Modern Çağda Benlik ve Toplum,
1.Baskı İstanbul: Say Yayınları, 2010
HABLEMİTOĞLU, Şengül, (2004); ”Küreselleşme Düşlerden Gerçeklere”, Toplumsal
Dönüşüm Yayınları, Ankara.
HELD, David ve McGREW Anthony; Küresel Dönüşümler Büyük Küreselleşme Tartışması,
Ankara: Phoenix Yayınevi, 2008.
KARABIÇAK, Mevlüt, Küreselleşme Sürecinde Gelişmekte Olan Ülke Ekonomilerinde
Ortaya Çıkan Yönelim ve Tepkiler, Süleyman Demirel Üniversitesi İktisadi ve İdari Bilimler
Fakültesi Dergisi, Cilt:7,Sayı:12002,113-116.
KIVILCIM, Fulya (2013), “Küreselleşme Kavramı Ve Küreselleşme Sürecinin Gelişmekte
Olan Ülke Türkiye Açısından Değerlendirilmesi”, SOSYAL ve BEŞERİ BİLİMLER
DERGİSİ Cilt 5, No 1, 2013 ISSN: 1309-8012 (Online)
VELİYEV, Dünyamalı SDÜ Fen Edebiyat Fakültesi Sosyal Bilimler Dergisi Mayıs 2009,
Sayı:19, ss.103-110.

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The Impact of Employees’ Emotional Capabilities on Customer Loyalty with the
mediating role of Rapport and Trust: A case of personal fitness industry

Mubashar Hassan Zia, Pakistan


Riphah International University, Islamabad Pakistan

mubasharzia@gmail.com

Fizza Asif, Pakistan


Riphah International University, Islamabad Pakistan

Ali Haider, Pakistan


International Islamic University, Islamabad Pakistan

eelihaider@gmail.com

Abstract

Emotional capabilities of employees affect the responses of customers especially in those


services that are personalized and driven by emotions. The Emotional Capabilities of
Employees directly influences personal loyalty, trust towards the employee and rapport.
Though, higher levels of emotional abilities are not significantly linked with loyalty towards
the firm through rapport. Results based on 330 clients from fitness personal training services
also propose that trust significantly increases loyalty. Rapport among the service employee
and the customer has no significant effect on customer loyalty. Implications of this study are
applicable for the personal trainers, service managers, and the companies of these sector as
well. Trainers should try to possess those abilities which enable them to better understand and
moderate the emotions of their clients. The managers of service firms must be aware, that in
order to establish customer loyalty towards their firm, it is really important for them to create
loyalty for the employees. The service firms should try to improve the overall customer
experience with the firm by nurturing the social link between the service employees and the
customers.

JEL Code: O15


Keywords: Employees’ Emotional Capabilities, Rapport, Trust, Customer Loyalty,
Emotional Competence, Personalized Service

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Introduction

During service encounter, number of times customers deal with negative emotions as the
service provider fails to meet customer expectations regarding service delivery. The service
encounters that deal with customers’ emotions mostly prevail (1) when the provided service is
negative in nature (Spanjol et al., 2015); (2) when the provided service is very complex and
customers’ level of involvement is very high; (3) for the services where the customers are
seldom provided with the bad news; (4) the services where the failures are quite frequent.
These service encounters that trigger customers’ emotions can have a significant impact
leading to highly negative emotions within the customers and may require the attention of
extremely devoted employees (Price, Arnould, & Deibler, 1995). So it is really important for
the companies specially the one’s providing services, to understand these service encounters
in order to manage them efficiently which requires emotional capability.

Emotional capability or competence refers to the ability of a person to process, regulate, and
utilize the emotions at a place in working environment (Cherniss, 2000; Zeidner, Matthews, &
Roberts, 2004); On the basis of different anecdotes, it is endorsed that the employees with
high level of emotional capabilities get more success in their careers due to their ability to
establish a positive climate among the customers leading to positive customer outcomes that
are beneficial for both the service employee as well as the service firm (Goleman, 1998).

Services and jobs related to the service firms look into one of the most important tasks that the
service employee has to create a positive atmosphere when the service encounter occurs
(Pugh, 2001). Services have a lot of characteristics but one of the most important
characteristics is that it can’t be separated from the people who are delivering them
(Gronroos, 1978; Zeithaml, Parasuraman, & Berry, 1985). Building on this premise, the
researchers start focusing on the interaction that takes place between the service employee and
the customer in order to better understand that how service companies can improve their
services. Prior studies in this area have indicated that the relationship of the customer with the
service employee is influential in developing loyalty towards the service company (Beatty,
Mayer, Coleman, Reynolds, & Lee, 1996; Biong & Selnes, 1995; Goodwin & Gremler, 1996;
Gwinner, Gremler, & Bitner, 1998). Despite the criticality of this area of research, a very

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limited research is available in this area which examine the perception of the customers
regarding a service firm with influence by the competencies of its employees.

Customer satisfaction with the service delivery is an outcome of employees’ emotional


intelligence (Hur, Moon, & Jung, 2015; Kernbach & Schutte, 2005). On the other hand, there
is another dimension in research based on reported results conflicting to the ones mentioned.
These studies indicates that the relationship between the customer outcomes and the
emotional abilities of the employees is non-significant thus negating the prevailing premise
(Giardini & Frese, 2008; Kim, Cundiff, & Choi, 2014). Recent research by Delcourt, Gremler,
van Riel, & Van Birgelen, (2016) has highlighted the importance of workers’ capability to
exhibit those actions in front of the customers that display competence.

This research study focuses on finding out the impact of employees’ emotional abilities on
loyalty, rapport, and trust towards the company and the employee providing services. In the
area of customized services, this research contributes to analyze that how the emotional
capabilities of employees favor customer’s loyalty not only towards the employee providing
the service but also towards the company that’s offering the service thus enhancing the
feelings of trust and rapport towards the specific employee providing the service. This study
contributes in three ways. First, this study provides facts that how emotional capabilities
directly affect the different expositions of association outcomes by using the customer-driven
viewpoint to evaluate the emotional competencies of employees. Secondly, by reinforcing the
notion and complicated arrangement of emotional capabilities as directed by the researchers,
it multiplies the exploration of the impact of emotion-linked capabilities on consumer-
associated results and behaviors in those services that are driven by emotions identified by
high level of personalization, for instance personal training services. Thirdly, this study
provides an answer that whether customers’ loyalty towards a particular employee influences
their loyalty towards the service company or not and whether this kind of loyalty towards a
particular service employee should be encouraged or not.

Literature Review

The Impact of Employee on Customer Outcomes and Behavior

There are three elements that have been recognized as the main pillars for building strong
customer relationships: behavior, emotions, and cognition (Payne, Storbacka, & Frow, 2008).
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It is very important for the employees to manage different aspects of emotions during the
service delivery in order to deal with the customers efficiently. Among them, the emotional
competence of the employees plays a central role as it includes those behaviors of the
employees which display their emotional capabilities (Giardini & Frese, 2008).

The ability of an employee to perceive the emotions of the customer is the first aspect of
emotional competence. These abilities enable the employees to forecast those situations where
customer displeasure is expected and also enable them to improve their interaction with the
customers (Mayer, Caruso, & Salovey, 1999).

The ability of an employee to understand the emotions of the customers is the second aspect.
Pera, Viglia, & Furlan, (2016) stated that by deciphering the affect element of the customers,
employees can experience a vicarious process of taking roles. Therefore, when the employees
have the capability to understand and interpret the emotions of their customers, they can take
those actions that are convenient for addressing the emotions of the customers, thus, leading
towards high level of customer satisfaction.

The last aspect is the capability of an employee to regulate the emotions of customer. In this
dimension, the actual performance of an employee in addressing the emotional reactions of
the customers during service encounter is critical. The ability of an employee to regulate the
emotions of others is very crucial during service encounters because this ability enables the to
change the sentimental state of the consumer by: reducing negative feelings like risk and
anxiety, pressings emotions or determining not to respond to them at all, provoking strong
positive responses (Lopes, Salovey, Côté, Beers, & Petty, 2005).

Rapport

The term rapport refers to the perceptions of the customers regarding the interaction that takes
place between themselves and the service employees. The concept of rapport involves the
perception of the customers, that there exist a chemistry between them and the company,
which in turn lead towards unpretentious interpersonal understanding (Ashforth & Humphrey,
1993), and also towards the state of affirmative mutual thoughtfulness (Nadler, 2004).
Attaining personal association among the consumer and the employee providing the service is
the other aspect of rapport (Gremler & Gwinner, 2000). When a customer feels strong

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emotional affiliation with the service employee, it becomes easier for the employee to deal
with and to tackle the emotional swings of the customer.

People who are emotionally competent have the ability to portray interpersonal capabilities
enabling them to be successful socially (McQueen, 2004). So, the employees who are
emotionally competent and have the ability to exhibit these competencies can improve the
rapport perceived by the customers by establishing strong bonds with them. As high level of
emotional competence is linked with rapport and effective interactions (Kim et al., 2014;
Lopes, Salovey, & Straus, 2003).

If the service providers are empowered to use their communication and social abilities, the
perceived rapport of the customers would be encouraged by the emotional competence of the
employees. On the basis of the above statement, it is hypothesized that:

Hypothesis 1: Employees’ emotional capabilities perceived by the customers positively affect


rapport.

Customer Trust

Moorman, Zaltman, & Deshpande, (1992) defined trust as a willingness of an individual to


depend on a party with whom they can have exchange relationship on the basis of trust or
confidence present among the parties involved in the exchange. This theory is supported by
Morgan & Hunt, (1994) who suggested that when one party is confident about the honesty
and reliability of the other party, trust prevails.

Research indicates that in case of services, where high level of risk is involved as the
customers are not knowledgeable enough, they have to trust the service employees (Coulter &
Coulter, 2002). In case of personal training and fitness services, the role of trust is very
important in shaping the experience of the customer due to many different reasons. The first
reason is that in case of these services, the level of involvement between the customer and the
service employee is very high. The second reason is that these kinds of relationships are
normally long term fixated. Lastly, the main entity of trust is a single employee who’s
delivering the service. Due to all these reasons, it is very important for the customers to trust
in the skills of their personal fitness trainers as only then successful service delivery could be
expected. The level of trust that the customers have on the service employees, depends on

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their interpersonal skills and behaviors like self-exposure (Macintosh, 2009b, 2009a) or
compassion (Sirdeshmukh, Singh, & Sabol, 2002). It is evident that employees with high
emotional competence have the ability to achieve trustful affiliations with the customers
(Chun, Litzky, Sosik, Bechtold, & Godshalk, 2010). As a positive link between trust and
emotional capabilities exists (Kim et al., 2014). Thus, it is hypothesized that:

Hypothesis 2: Employee’s emotional capabilities perceived by the customers, positively


affects trust.

Based on the arguments of literature, rapport is considered to be the predecessor of trust


(Nadler, 2004). Beneficial exchanges take place among the parties on the basis of trust, when
they exhibit concern and care for each other (Macintosh, 2009a). For instance, if an employee
shows concern for the customer, trusts on the value of this relationship, and try to understand
his customer emotionally, only then he/she would be able to create a climate through which
the level of trust could be enhanced (Kim et al., 2014). Prior research has also indicated a
positive association between trust and rapport (Macintosh, 2009b). Thus, it is hypothesized
that:

Hypothesis 3: The rapport perceived by the customer has a positive influence on trust.

Customer Loyalty

Zeithaml et al. (1996) identified that the intention of a customer to purchase a firm’s product
or service again and again is called customer loyalty. In case of those services that are
professional or personal in nature, the loyalty of the customer either depends on the employee
delivering the service or the service firm (Bove & Johnson, 2006). So, in order to create
loyalty for a specific firm or a personal trainer, the relationship between the customers and the
staff members plays a very important role. Research in the area of emotional competence also
speculate that those employees who are highly competent emotionally are likely to be more
successful in creating linkages and handling relationships (Mayer, 1997). Delcourt et al.,
(2016) also identified that when the customers interact with these kinds of employees who
have the ability to understand their emotions, they identify the benefits of such interaction and
feel indebted to these employees. In order to reciprocate, they show more loyalty towards
these employees. Thus, it is hypothesized that:

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Hypothesis 4: Employee’s emotional capabilities perceived by the customers, positively
affects customer loyalty towards (a) the firm and (b) the service worker.

The Impact of Trust and Rapport on Customer Loyalty

In order to elaborate the concept of loyalty in the area of marketing, trust and rapport have
been used as vital constructs. Rapport not only strengthens the association among the service
firm and the consumer (Azab & Clark, 2017), but along with that it also enhance the
relationship among the service worker and the service firm (Gremler & Gwinner, 2000).
Consequently, it has been indicated by the past researchers that the most important component
in the service context is “interpersonal relationship” (Barnes & Pressey, 2008; Guenzi &
Pelloni, 2004). In order to highlight the crucial part of relationship, it has been suggested and
validated empirically as well, that whenever workers leaves the firm, few clients who have
very robust relationship with that employee also leave the firm in order to follow those
employee and services offered by them (Reynolds & Beatty, 1999). Palmatier, Scheer,
Houston, Evans, & Gopalakrishna, (2007) explained that a part of loyalty that the customer
has for the firm is actually due to its employee or a specific employee most of the times.
Similarly, trust encourages consumer liberation or empowerment, it also promotes positive
word-of-mouth and dampens customer switch towards other companies (Kantsperger & Kunz,
2010), hence inducing loyalty towards the company (Bock, Mangus, & Folse, 2016). On the
basis of prior studies, it could be said that in personal training services, trust and rapport lead
towards loyalty. But a very few research has been found which is done to differentiates
customers’ loyalty towards the service worker and the service firm. Thus, for revealing this
gap, it is hypothesized that:

Hypothesis 5: Rapport perceived by the customers positively affects customer loyalty


towards (a) the firm and (b) the service worker.

Hypothesis 6: Customer loyalty towards (a) the firm and (b) the service worker is positively
affected by customer trust.

Bove & Johnson, (2006) state that, customer’s loyalty towards a particular employee could be
advantageous for the firm. Therefore, if the clients have positive emotions for a particular

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service worker, then these positive emotions would most likely be transferred to the company.
On the other hand, there are some other researchers according to whom, strong relationships
between the customers and the service employee may not lead towards loyalty for the firm
(Bendapudi & Leone, 2002). It may happen that if that specific employee leaves the company,
then the customer may also leave the organization. So, customer’s personal loyalty towards a
specific employee may make it difficult for the company to retain its customers. This study
claims that the customer’s loyalty towards a service corporation is influenced by his loyalty
towards a specific employee working within it (Bove & Johnson, 2006). On the basis of the
above discussion, it is hypothesized that:

Hypothesis 7: The loyalty of a customer for a particular service employee positively affects
his loyalty for the organization in which that employee works.

Rapport

Loyalty
towards the
company
Employee
Emotional
Capability Loyalty
towards the
employee

Trust

Figure I Theoretical Model

Research Methodology

Data Collection

The collected responses in the current study varied widely on personal and participants’
country and state. Since this study used self-reported survey technique, therefore, response
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error was a concern because researchers had no control over how it was completed. Hence,
relevant data screening approaches such as descriptive statistics, missing values, unengaged
responses identifying Univariate/multivariate outliers were also reported. Table 1 shows the
summary of the demographic profiles of the participants.

Variable Category Frequency %age

Member Yes 330 100%

No -- --

Gender Male 280 84.84%

Female 50 15.15%

Age 18-24 45 13.63%

25-34 263 79.69%

45-54 17 5.15%

55-64 5 1.51%

More than 65 0 0

Expertise Highly experienced user 58 17.57%

Moderated experienced user 240 72.72%

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Low experienced user 32 9.69%

Frequency of Visit Less than once a month 0 0

Once a month 4 1.21%

Two or three times a month 11 3.33%

Once a week 34 10.30%

Two or three times a week 81 24.54%

Four or more times a week 200 60.60%

Table I Demographics

Although we retrieved 350 questionnaires, however, after removing some respondents during
data screening process the final 330 respondents were retained who took part represented 280
were male in the sample and 50 were female in sample.

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Results and Discussions

Figure 2 CFA

To verify the convergent validity among our study constructs, we confirmed that all the five
variables convergent validity Rho, VC is >.50 regardless of sample size, it is required to have
threshold level which is greater than 0.50 and averaging out to greater than 0.70 for each
factor as the threshold level is shown in table 18. For testing of discriminant validity explains
that the extents to which factors are different. The rule is that variables should relate more
strongly to their own factor than to another factor, however, Maximum Shared Squared
Variance: MSV should be less than Average Variance Extracted: AVE (Hair, B., Babin, &

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Anderson, 2010) accordingly results revealed that the value of MSV are less than AVE of all
our constructs in their respective sections.

CR AVE MSV MaxR F1 F2 F3 F4 F5 F6

(H)

F1 0.851 0.528 0.426 0.908 0.7266

F2 0.851 0.779 0.497 0.738 0.565*** 0.8826

F3 0.734 0.682 0.444 0.751 0.567*** 0.557*** 0.82583

F4 0.836 0.862 0.366 0.850 0.635*** 0.570*** 0.526*** 0.9284

F5 0.788 0.856 0.433 0.812 0.650*** 0.526*** 0.544*** 0.577*** 0.9252

F6 0.863 0.873 0.491 0.683 0.510*** 0.591*** 0.580*** 0.543*** 0.649*** 0.9343

Table II Reliability and Correlation

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Figure 3 Structural Equation Model

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Hypothesis Predictor Outcome Std Accepted/
Beta Rejected
H1 Emotional Competence Rapport .926 Accepted
***

H2 Emotional Competence Trust .324 Accepted


***

H3 Rapport Trust .619 Accepted


***

H4a Emotional Competence Loyalty towards the .114 Accepted


company ***

H4b Emotional Competence Loyalty towards the .283 Accepted


Employee ***

H5a Rapport Loyalty towards the .033 Rejected


company

H5b Rapport Loyalty towards the -.029 Rejected


Employee

H6a Trust Loyalty towards the .119 ** Accepted


company

H6b Trust Loyalty towards the .727 Accepted


Employee ***

H7 Loyalty towards the Loyalty towards the .737 Accepted


Employee company ***

Table III Hypothesis Testing

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All the Hypothesis except H5a and H5b are accepted.

Conclusions, limitations and future research

With the help of a distinctive sample collected from the fitness clubs from different locations,
the empirical analysis suggests that employee’s emotional capability is directly and positively
related to loyalty towards the employee. Past research has indicated that people who are
emotionally competent have the ability to portray interpersonal capabilities enabling them to
be successful socially (McQueen, 2004). So, the employees who are emotionally competent
can improve the rapport perceived by the customers through establishing strong bonds with
them. The level of trust that the customers have on the service employees, depends on their
interpersonal skills and behaviors like self-exposure (Macintosh, 2009a, 2009b). Past studies
have indicated a positive link between trust and emotional capabilities (Kim et al., 2014).
According to some studies, rapport is considered to be the predecessor of trust (Nadler, 2004).
Beneficial exchanges take place among the parties on the basis of trust, when they exhibit
concern and care for each other (Macintosh, 2009a). Prior studies have indicated a positive
association between trust and rapport (Macintosh, 2009b). Delcourt et al., (2016) also found
that the loyalty of a customer is also affected by the emotional abilities of the employees on
the basis of norms of reciprocity. When the customers interact with these kinds of employees
who have the ability to understand their emotions, they identify the benefits of such
interaction and felt indebted to these employees. In order to reciprocate, they show more
loyalty towards these employees. Palmatier et al., (2007) explained that a part of loyalty that
the customer has for the firm is actually due to its employee or a specific employee most of
the times. Similarly, trust encourages consumer liberation or empowerment, it also promotes
positive word-of-mouth and dampens customer switch towards other companies (Kantsperger
& Kunz, 2010), hence inducing loyalty towards the company (Bock et al., 2016). Those
customers, who blindly trust their service workers, are expected to stay dedicated with the
company. Bove & Johnson, (2006) stated that, customer’s loyalty towards a particular
employee could be advantageous for the firm. Therefore, if the clients have positive emotions
for a particular service worker, then these positive emotions would most likely be transferred
to the company. Past researches have indicated that people who are emotionally competent
have the ability to portray interpersonal capabilities enabling them to be successful socially

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(McQueen, 2004). So, the employees who are emotionally competent can improve the rapport
perceived by the customers through establishing strong bonds with them. There are some
empirical studies in which high level of emotional competence is linked with rapport and
effective interactions (Kim et al., 2014; Lopes et al., 2003). So, if the personal trainers are
empowered to use their communication and social abilities, the perceived rapport of the
customers would be encouraged by the emotional competence of the employees. It has been
argued by the past researchers that employees with high emotional competence have the
ability to achieve trustful affiliations with the customers (Chun et al., 2010). According to
another study, people with higher level of emotional intelligence have the aptitude to identify
the emotions and feelings of others and later on this information could be used by them to
encourage trustworthy and productive relationships (Mayer, Salovey, & Caruso, 2004). Past
studies have also indicated a positive link between trust and emotional capabilities (Kim et al.,
2014).

There are few limitations in this study. First of all, this study has collected and investigated
the data collected only from Pakistan. Though, the results are from different service providing
firms, external validity of the findings may be influenced by the cultural aspects. For future
research, there exist a great opportunity of creating a field experiment and finding out the
actual behaviors of the customers. The second limitation is that this study focuses on only one
particular kind of service characterized by emotional load, customization and high contact. In
case of those services that are impersonal and standardized in nature, the impact of
employees’ emotional capabilities on customers’ overall experience should also be
investigated in future. Third, in future research more moderators should be included. Though
in this study, the dependent variables are not affected by the extent of relationship or the
customers’ degree of knowhow with the service sphere, the link between employee emotional
capability and customer response may be influenced by these factors (Coulter & Coulter,
2002). Integrating other variables linked with the personality of the customers (i.e. relational
self-consciousness) (Uhrich & Tombs, 2014), individual’s connection with the service,
Gender and age or measuring cross-cultural differences may help to better understand the
model’s associations. Fourth, to evaluate employees’ emotional capabilities, this study has
used the customer driven approach (Delcourt et al., 2016). In future studies, it should be
explored that whether these interpersonal capabilities of employees influences the assessment
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of customers regarding the services. Lastly, as recently recommended by Kumar & Reinartz,
(2016), future research in the fitness industry should emphasize on finding out that how a
fitness customer determines value. In a rising competitive segment where online existence
through social networks and blogs offers a non-customized and inexpensive service to those
clients that are price sensitive, it should be fascinating to know whether emotional skills can
add value to the customer and offer tailored programs to suit each customer’s need.

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Determination of the Most Appropriate Robot Kit Model for Robotics Companies with
AHP-TOPSIS Hybrid Method: An Application

Hakan Murat ARSLAN, Turkey

Düzce University
Abstract

When the latest studies on robotics suppliers are examined; It has been determined that there
are problems in the supply of kits, which are frequently used in robot manufacturing, in
making right decision. Working with the right suppliers will reduce purchasing costs in a
business, increase customer satisfaction and improve competitiveness. However, neither the
relevant companies nor the scientists working on this subject do not use multi criteria decision
making methods for such decision problems. Whereas, decision analysis methods can be used
in the problems of determining the most suitable robot kit model with many criteria and
alternatives.

In this direction, it is the main purpose of the study to assist the relevant business in
determining the most suitable robot kit model for a company that imports robot kits. In the
analysis of the study, criteria such as the number of parts, the number of engines, engine
power, robot sensors and price were taken as the basis. Five robot kit models currently
provided by the relevant enterprise have been accepted as alternatives. Alternative robot kit
models are listed according to their priorities with AHP and TOPSIS methods based on the
determined criteria. As a result of the conducted analysis; the most suitable models for the
relevant company importing robot kits are listed as A1, A3 and A5, respectively. The results
of the study have been shared with the relevant import company. In future studies, current
decision analysis methods can be used for decision problems on the supply of robotic
products.

Keywords: Multi Criteria Decision Making Methods, AHP and TOPSIS Methods, Robotic
Firms
JEL Codes: M11, C02, C51, C61

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Introduction

One of the most important issues related parts for Robotics and where firms are how to
supply. When the relevant literature was examined, it was seen that this issue was never
studied with MCDM methods. In this study, it is aimed to help a company importing robot
kits to determine the most suitable supplier. This was considered as a decision problem and
evaluated with AHP and TOPSIS methods.

The third part of the study includes the analysis method, and the fourth part includes the
analysis of determining the most suitable robot kit supplier with AHP and TOPSIS methods.
In the fifth and last section, the findings of the study were evaluated within the framework of
other studies in the literature and recommendations were made to researchers for future
studies.

Litreture Rewiev

AHP Method and Related Studies

AHP (Analytical Hierarchy Process) Method:

Essentially, the purpose of this method is; systematic approach to complexity is to assist
decision-makers in making optimum decisions and rating alternatives. It is used frequently in
many applications. In addition, there are advantages such as shaping the results in expected
values and in line with the demands of the decision maker (Saaty, 1999). The evaluation
stages are given in order below;

1- Determination of criterion weights

2- Determination of the consistency index

3- Comparison of alternatives within the framework of the criteria

4- Multiplying the obtained decision matrix by weights

5- Ranking of alternatives

Studies with AHP Method

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Ulutaşı & Çelik (2019) used MCDM methods in the problem of choosing the most
appropriate leverage needed by a clothing store. First of all, criteria were determined and their
weights were determined with AHP Method. These criteria are; price, lifting capacity, ease of
finding spare parts, warranty period, brand reliability and fork length. Alternatives are listed
according to their priorities using the EDAS method. Among the six alternatives determined,
the most suitable one has been evaluated as "Leverage 3".

Ağaç & Baki (2016), the usability of Multi Criteria Decision Making Methods in the field of
health sector was examined. The criteria and alternatives of the study were obtained with the
support of keywords from five different databases. In their analysis findings, they determined
that the most used MCDM method was AHP Method and secondly, integrated ANP based
methods.

Durdudiler (2006) evaluated the supplier problem of a retail firm using AHP, one of the
MCDM methods. Products of the same quality belonging to different suppliers were selected
and recorded in the basic data set in accordance with the criteria determined first. The
ambiguous and uncertain evaluations were clarified by using the solution stages of the AHP
Method in line with the judgments made by decision makers about the criteria and
alternatives. Thus, it has evaluated the suppliers in order of priority with the characteristics
desired by the business.

Kaplan (2010) conducted a supplier selection study in the retail industry. In his study, he
preferred the AHP Method to determine the optimum among three suppliers. In the study, 44
selection criteria were determined with the questionnaire method and the relevant model was
created. Business officials helped create the model. The priorities of the alternatives were
determined according to four criteria. It has been observed that the most suitable alternative is
Company 1.

Alyanak &Armane (2009) conducted analyzes for the decision problem aiming to select the
most suitable supplier and determine the optimum order quantity in a battery manufacturing
enterprise. Goal programming and AHP methods were applied in the study. With these
methods, the most suitable supplier was determined and the optimum order quantity was
determined.

TOPSIS Method and Related Studies


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The main purpose of TOPSIS (Technique for Order Preference by Similarity to Ideal
Solution) method is to determine the alternative in optimum properties. In the analysis steps
of the method, there is logic of determining the shortest distance to the ideal solution and the
longest distance to the undesired solution (Hwang and Yoon 1981). The TOPSIS Method has
been preferred recently due to its applicability to many areas and its easy processing steps. In
addition, it can be used in many applications as it allows the weights of the criteria to be taken
into account in ordering the alternatives according to their priorities (Çakır and Perçin 2013).
Order of analysis stages is given below;

1- Creating the Decision Matrix

2- Creating Standard Decision Matrix (R)

3- Creation of Weighted Standard Decision Matrix (V)

4- Finding Ideal Positive and Negative Values

5- Calculation of Discrimination Measures

6- Ranking of Alternatives

Studies with TOPSIS Method

Günay and Ünal (2016)’s main purpose of studies was that analyzes were carried out using
AHP and TOPSIS methods. Selection criteria have been determined for determining the
optimum supplier of a telecommunication company and the product quality criterion has been
determined as the most important criterion. The weights of the criteria were determined by the
AHP method. The most suitable alternative supplier companies could be ranked using the
TOPSIS method.

Akçin (2019), MCDM methods were used to determine the most suitable one among the
families who applied to the Child Protection Agency for adoption in Bursa. Criteria weights
formed according to their importance levels were evaluated with AHP Method. Applicant
families were also evaluated with the TOPSIS Method as an alternative. The most suitable
family has thus been determined.

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Eren and Gür (2017), the necessary criteria for businesses to develop new strategies to
increase their competitiveness and online shopping have been determined. The weights of the
determined criteria were determined by the AHP Method. The priority ranking of alternative
companies was determined using the TOPSIS Method.

Methodology

Multi Criteria Decision Making Methods

Multi criteria decision making techniques consist of approaches and methods that try
to reach a possible “best / appropriate” solution that meets multiple conflicting criteria.
Decision makers can make scientific and more successful decisions by using multi-criteria
decision making techniques to overcome such problems. In multi criteria decision making
approaches, a significant number of candidates are graded by comparing the alternatives of
plans, policies, strategies, and action styles, and the best among them is tried to be selected
(https://tusside.tubitak.gov.tr).

Purpose of the Study

AHP and TOPSIS methods were used in this study. The necessary data for the
application of these methods were obtained from the managers of the relevant company. As a
result of the carried analyzes, the tables required for the application of TOPSIS and AHP
methods were created. Sequentially, the process steps were applied and the expected results
were obtained. The main purpose of this research is to show that the determining the most
suitable robot kit importer can be solved by MCDM techniques.

Scope of the Study

Students who have to solve the accommodation problem and the alternative
accommodation places in the solution are limited to Düzce. The question of the research is,
Can the housing problem of university students be solved with Multi Criteria Decision
making (MCDM) methods? The reason for using AHP and TOPSIS methods in the research;
It is the easy calculation of outputs with few input parameters and simplicity of processing
steps.

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Research Model

In the study, AHP and TOPSIS methods were used in the determining the most suitable robot
kit importer problems. Managers of the relevant firm have been accepted as decision makers.
The comparisons made by decision makers about criteria and alternatives formed the basic
data set of AHP and TOPSIS methods.

Determination of Criteria and Alternatives

In line with the relevant literature and the opinions of decision makers, the determining the
most suitable robot kit importer were thoroughly examined. Criteria and alternatives were
determined for the study.

Alternatives

A1: Firm A

A2: Firm B

A3: Firm C

A4: Firm D

A5: Firm E

Criteria;

K1: Price (Euro)

K2: Set content (Piece)

K3: Motor Power (rpm)

K4: Robot Sensors (Piece)

K5: Part Size (Piece)

Findings and Comments

Determining the Most Suitable Robot Kit İmporter with AHP Method

Expressing Basic Data Set

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In the decision problem, 5 criteria have been determined that will affect the determination.
The data are expressed in Table 1 to show the value of each alternative according to each
criterion.

Table 1. Basic Data Set

K2: Set K4: Robot


K1:Price K3: Motor Power K5: Part
content Sensors
(Euro) (rpm) Size (Piece)
(Piece) (Piece)

A1: Firm A 2310 8 300 2 4500

A2: Firm B 1355 4 200 1 1200

A3: Firm C 1838 6 300 5 1500

A4: Firm D 920 4 200 1 250

A5: Firm E 506 4 120 7 800

Determination of Criterion Weights with AHP Method

Table 2. Normalized Matrix

Criteria K1 K2 K3 K4 K5 Average

K1 0.066 0.035 0.049 0.158 0.055 0.073

K2 0.201 0.107 0.073 0.105 0.110 0.119

K3 0.199 0.214 0.146 0.104 0.167 0.166

K4 0.133 0.321 0.442 0.316 0.334 0.309

K5 0.400 0.324 0.291 0.316 0.334 0.333

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Total 1.000 1.000 1.000 1.000 1.000 1.000

Weights of Criteria

W1 = 0.073 (K1)
W2 = 0.119 (K2)
W3 = 0.166 (K3)
W4 = 0.309 (K2)
W5 = 0.333 (K3)

Ranking Alternatives According to TOPSIS Method

The alternatives were ranked according to the TOPSIS method, taking into account the
priority values and the weights of the relevant criteria. Relevant rankings are given in Table 3.

Table 3. Ranking Alternatives According to TOPSIS Method

Alternatives Ranking values Ranking

A1: Firm A 0.895 1.

A2: Firm B 0.189 4.

A3: Firm C 0.456 2.

A4:Firm D 0.098 5.

A5:Firm E 0.348 3.

Findings and Comments

In the study, AHP and TOPSIS methods were used to determining the most suitable robot kit
importer problem. When the analysis results are examined carefully, it is seen that; A1 (Firm
A) ranked first and A3 (Firm C) ranked second. According to these results, It will be
appropriate to choose (Firm A) as the most suitable robot kit importer.

Results and Suggestions

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Working with the right suppliers will reduce purchasing costs in a business, increase customer
satisfaction and improve competitiveness. However, neither the relevant companies nor the
scientists working on this subject do not use MCDM methods for such decision problems.

Due to the stated reasons, determining the most suitable robot kit importer can be considered
as a decision problem. Therefore, AHP and TOPSIS methods were preferred among MCDM
techniques in this study. In the application part of the study, analyzes were conducted to
determining the most suitable robot kit importer. It has been shown that MCDM can be used
in solving the related decision problem.

The use of MCDM methods in solving the decision problem of determining the most suitable
robot kit importer has been shown. As a result, it has been observed that the most suitable
importer is Firm A. The results of the study were shared with relevant authorities. Actual
optimization methods can be used in similar studies in the future.

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References

Ağaç, G. ve Baki, B. (2016). Sağlık Alanında Çok Kriterli Karar Verme Teknikleri
Kullanımı: Literatür İncelemesi. Hacettepe Sağlık İdaresi Dergisi, 19(3), 343-363.
Akçin, E. (2019). Evlat Edindirme Aile Seçim Sürecinin AHP ve TOPSIS Tabanlı Bilgi
Sistemi İle Değerlendirilmesi. Yüksek Lisans Tezi, Endüstri Mühendisliği, 1-123.
Alyanak, G., Armane, Ö., 2009, “An Integrated Supplier Selection and Order Allocation
Approach in a Battery Company”, Endüstri Mühendisliği Dergisi, Vol. 19, No.9, pp. 2-19
Çakır, S. ve Perçin, S. (2013). AB Ülkeleri’nde Bütünleşik Entropi Ağırlık-TOPSIS
Yöntemiyle AR-GE Performansının Ölçülmesi, Uludağ Üniversitesi İktisadi ve İdari Bilimler
Fakültesi Dergisi, XXXII (1), 77-95
Durdudiler, M., (2006). Perakende Sektöründe Tedarikçi Performans Değerlemesinde AHP
Ve Bulanık AHP Uygulaması, Yayımlanmamış Yüksek lisans Tezi, Yıldı Teknik
Üniversitesi, İstanbul.
Eren, T, Gür, S. (2017). Online Alışveriş Siteleri İçin AHP ve TOPSIS Yöntemleri İle 3pl
Firma Seçimi. Hitit Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 10 (2) , 819-834. DOI:
10,17218/hititsosbil.285102
Günay, Z. ve Ünal, Ö.F. (2016). AHP-TOPSIS Yöntemi İle Tedarikçi Seçimi (Bir
Telekomünikasyon Şirketi Örneği). Pesa Uluslararası Sosyal Araştırmalar Dergisi, 2(1), 37-
53.
https://tusside.tubitak.gov.tr/tr/yontemlerimiz/Cok-Kriterli-Karar-Verme-teknikleri
Hwang, C. L. and Yoon, K., 1981. Multi Attiribute Decision Making Methods and
Applications, Springer-Verlag.

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Kaplan, R. (2010). AHP Yöntemiyle Tedarikçi Seçimi: Perakende Sektöründe Bir Uygulama.
İstanbul Teknik Üniversitesi, Fen Bilimleri Enstitüsü, Yüksek Lisans Tezi, 1-157.
Saaty L T (1999). Basic Theory of the Analytic Hierarchy Process: How to Make A Decision
Rev. R. Acad. Cienc. Exact. Fis. Nat. (Esp), Vol. 93, N. 4, pp. 395-423.

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Game changing role of HRD &Leadership amid and Post COVID -19

Hina Zahoor & Nasir Mustafa, Turkey

Istanbul Gelisim University, Turkey

Abstract

Natural bio catastrophe, COVID 19 pandemic has brought several challenges to the globally
functional organizations and as governmental organizations, non-profits, intergovernmental
corporations are all aware that hardships through pandemics can happen, we should proactive
about them rather reactive as we are always. The aim of this manuscript is to investigate to
consider the new roles of Human Resource Development (HRD) based on the Pandemic
ramifications in general, and COVID-19 in particular. In this paper we provide several
themes, based on the literature in international context to address the questions related with
leadership competencies during and post times of this Pandemic and also game-changer role
of HRD. We explored needed leadership skills in the time of pandemic in terms of art to grab
the trial circumstances, contemporary communication, adoption of new technology and
asseverate financial status, followed by possible futures for HRD Practice post pandemic
crises with new roles for HRD researchers and practitioners. In conclusion the potential
opportunities are discussed in terms of post- pandemic HRD research, and practice.

Keywords: Game changing role of HRD; Leadership competencies; contemporary


communication, technology and asseverate financial status, COVID-19 crisis.
Jel Code: J53

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Introduction

The recent pandemic COVID-19 havoc is unprecedented. The intensity and pace of collapse
in different activities that have followed are different in experienced in our lifetime (Gopinath

2020) It has brought several challenges and changes to business functioning around globe.
Social and economic norms are shuffled, triggering a new human era. In this struggling time
when social, economic, and health systems on the verge of collapsing, the future shape of
world will depend on the decisions of leaders make now as communities, organizations and
Governments, are looking for recommendations from their leaders and these responses of
leaders to this havoc could change the economic, social foundations permanently and assist
individuals and systems toblow away their fear and anxiety to the crisis and in progress of
their progress (KM Dirani, et al. 2020). Based on this introduction this study is an immediate
response of leadership skills to the COVID-19 pandemic and provide cases of best practices
of leadership in different contexts, followed by exploring roles for HRD practitioners as a
game changer to support leaders adapt to the new norms in the age of COVID-19. The
concluded part covered HRD research and practice in post pandemic crisis.

Leadership competencies in response to critical situation

Leaders who address the threats and leverage the opportunities caused by the crisis, and
manage change in organization at all level for organizational adaptability and future break
through (Wang, 2008). Organizational leaders reckon on their instincts and insights given by
human resource professionals, to encourage and support their organization and employees.
Amid pandemic some leaders are unsuccessful in their efforts to save organizations and jobs.
According to Miller and Berk (2020) by early spring 2020, 561 organizations have filed for
bankruptcy in the United States. The reason behind is the lack of readiness of leaders to tackle
with a crisis.

Organizations are in point of no return struggling to meet the basic needs of their customers
along with assuring the well-being of their employees. Many studies explored that Global
disaster, like COVID 19 provoke the critical situations for leadership and organizational
practices in terms of worst employee performance, turnover, aggression and bigotry and it

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also affect physical and psychological health of workers (Bader et al. 2018; McNulty et al.
2019). organizational and leadership research studies focused more on the threats like
misconduct, lawlessness and social unrest but very few on the issues related to consequences
and challenges arose by these global threats like COVID 19 Pandemic.

Common best leadership practices.

Leadership Practices Functional Definition

Model the Way Attain big goals and create their own

standards of excellence and set examples

for the followers

Inspire a Shared Vision To create unique image and envision future,

persuade and appeal the employees by

enlisting them in leaser’s vision.

Challenge the Process Finding opportunities to change existing

new ways for better organizational


performance

by research.

Enable Others to Act Promote collaborative team efforts and active

Participation and build an environment of

trust and cooperation

Encourage the Heart Acknowledge employees’ efforts and celebrate

their victoriesto make them feel special and

connecting.

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Critical situation and workers

Crisis leads to employee layoffs (Adkins et al. 2001). It causes stress due to sabotage of
organization and its employee and the leaders have to face notable challenges like unclear and
unreliable information fluctuating goals. HRD researchers consider employees the blood of
organization and as gaining competent employees are gain of knowledge similarly loss of
such employee knowledge (Ramlall, 2004).To retain these employees and utilizing their
expertise for high productivity ( Naudé 2012).According to Wang et al (2016) there are three
different categories of workers to crisis first category includes those who try to safe
themselves and remain active to combat the situation, the second group accept and
compromise the circumstances and the third category’s source of strength is their faith to fight
the situation. It is also noted that employees are less complaining regarding labour violations
during this time period fear of firing from job. Employees need emotional and interpersonal
support to tackle the situation.

Role of HRD in pandemic

Human Resource Development consider the wellbeing and health of human capital crucial as
the employees are the blood of organization. Scholars suggested in studies that HRD
practitioners are helpful in reducing stress (K M. Dirani et al,2020). HRD also help in
reducing the gap between the employees and leaders and especially in the period of pandemic
like COVID 19 it is proved to be game changer for HRD (Robert, 2020). Certainly the
response of organizational policies in response to pandemic influenced the HRD practices and
it made HRD more predictive.

According to the Wooten and James (2008) leadership in crisis require specialized skills and
abilities which enable them to respond to situation and in the meantime HRD professionals
play significant role in building positive image of leaders by providing support in terms of
compassion and kindness and through proactive and strategic approach. Now we will discuss
the supportive role of HRD in COVID 19 with examples:

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Art to grab the trial situation

In the time of crisis like COVID 19 employees always seek guidance of the leaders to respond
the challenging environment. Workers trust on their leaders for sensible planning and
implementation to cope up with the crisis. Researcher suggested that to gestate and visualize
what leaders do, is to limit the range of reaction to any action rather to attain from the
definition that is currently prevalent. It is an art to handle the tough situation and leaders are
proven by their actions in trial circumstances, how they handle, what steps they prefer
.Scholars emphasized that leaders need to be active and fast to the changing circumstances
and they put their efforts into practice to attain the desired outcome Colville and Murphy
(2006).Leaders are critical thinkers in trial situations to develop new strategies and new
processes and put these plans into action Eraut (2006).Art to grab the situation by sense
making and logical thinking is important cause it is the vital element in daily decision making
process in any organization. Scholars stated that HRD practioners in cooperation with the
leaders providing support the employees with their expertise and guidance. (K M. Dirani et al,
2020).

In effective response to crisis like pandemic COVID 19 needs a leader who make decision
quickly and must also possess ample social influence on the employees and HRD can provide
assistance to the leaders to grab the situation. For this purpose, HRD professionals must tap
their links with their colleagues to get aware of the decisions and implementations of other
organizations in response to the COVID-related issues. Furthermore, employees’ data direct
from the field also help the leaders to evaluate the situations more vividly. Here we have the
example of Diane Gerson’s, HR professional in IBM, to make the policy to administer work
from home in the beginning of pandemic, arranging weekly two meetings with workers to
know their issues in order support the policies the officer presented to the leaders.

Swift adoption of technology

Technology is an integral element in any organization and competent leaders enable the
employees to use the technology for their tasks completion. Leaders develop the vision for
integrating technology within the organization and studies reveal leadership competencies
across the technology innovation process too and this technology is utilized by employees to
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perform their activities. (Awie et al, 2019; Lewis 2010). Researchers suggested that leaders
enable workers to respond positively to the fast changing demands of the world (Schreiber
and Carley,2006). Furthermore, technology helps to reduce the stress of the employees and
managers in the critical situation by making the process more flexible. It helps individuals to
work at multiple locations. It is evident that during Covid Human Resource Development, e-
learning, self-learning, online learning, LMS have crucial, pertinent and relevant in all fields
of life across the world (Nachmias, 2020). HRD professionals can make use of this new trend
of innovation in technology and to support to their leaders in terms of cost effectiveness and
to employees in terms to fulfill their learning and socializing needs. Here is an example of
CIOs’ of more than 10 different organizations, how did they respond to the technology for
their employees need. One of the Chief officer at Garter stated in his interview that his
organization adapt new digital strategy for their employees and customer needs (Suer,020).

Use of emotional intelligence

Employees suffered with stress and emotional disturbance due to Pandemic COVID-19 and
leaders are anxious to overcome these problems. Leaders has the responsibility to understand
each employee problem and also guide them how to cope it. Many studies expressed that
organizations provide space to employees for grievance and HRD also help leaders to develop
emotional intelligence and this leadership trait proved to be most important. (Rocco 2019;
Farnia 2016). Emotional-social intelligence model of Bar-On’s (1997) focused on the leader’s
intrapersonal skills, stress management, interpersonal skills and adaptability and it provide
guidance on leadership development. Daniel Goleman (2002) stated that Emotional
intelligence depends on leader’s social awareness, self-awareness, social skills and self-
management. He also pointed out that the effectiveness of personal and organizational value
based on EI and should be the benchmark for leadership position. Moreover, study explored
that all the aspects of emotional intelligence have the potential to absorb the job stress.
Researcher also pointed out that EI work as a beta blocker for stress (Hina et al, 2020).
Therefore, in this crisis of COVID 19, leadership should use their emotional intelligence for
the wellbeing of employees. For this purpose, leaders require to be more virtually connected
on regular basis and HRD can ensure that such communication must focus on employee’s

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well-being. At this challenging time when it is really hard for employees to separate their
work from challenges. HRD must help leaders to set realistic goals for their organizations and
also to set up virtual podium for employees.

Contemporary communication

Amid COVID-19 industries are performing well to cope up communicating challenges and to
provide them relief. Organizations shared on their websites about how they are combating to
COVID-19 for the sake of their employee’s wellbeing and customer’s safety as well.
Ravazzani (2015) stated that organizations developed their new business model in respond to
changing needs of customers and leaders to approve the strategic decisions and these
decisions are shared with employees by Line managers and direct supervisors. At present,
during COVID-19, when misinformation and confusion spreading among the viewers. It is the
duty of Industry leaders to help employees to gain the correct and most recent information.
Furthermore, leaders require to adopt more contemporary ways to convey information to
employees to reduce their panic and restlessness as the employees are experiencing COVID-
19 differently across the globe so they respond to it differently. Leaders of different industries
engaged their employees on one-on one basis either weekly or daily basis which led to
positive reinforcement. HRD can play their role to develop contemporary communication
techniques during this crisis which will benefit leadership goals. Research study emphasized
that framing a communication message during the critical situation affects employee’s sense
making (Ravazzani,2015).

Asseverate financial status of the organization

Organization need strong leaders to play essential role not just for the wellbeing of employees
but for the organization itself too during crisis. To keep up with good financial position and
fiscal capacities is the positive message for the employees. Jobs can be saved and lay-offs can
be avoided by money saving. Financial blow affects productivity as it causes employees
restlessness. Research study stated that during a crisis, HRD helps the organization’s
resilience and it is the element of success and productivity (Mitsakis 2019). During financial

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crisis HRD play its role to provide support to leaders to keep the organizations afloat by
formulating cost reduction strategies. HRD also develop individual and organizational
competencies through agility, flexibility, and adaptability by interacting with micro and macro
organizational factors. Study expressed that financial health of the company depends on
organizational leaders but in times of crisis leaders under stress and other psychological forces
can be distracted from their roles as risk managers (Schwantes,2020). HRD practioners get the
employees aware of the organization’s financial standing through meaningful and innovative
communication like when they are kept informed on why access to some essential resources is
restricted, impact the employees positively. More over HRD professionals may present
feasible alternatives to employees which do not harm employee well-being this enable them to
demonstrate their support to a leader’s decisions on cost-cuttings.

Table 2 provides a comparison of leader roles and practices in normal times vs. in times of
crisis.

Leadership roles in normal situation vs. Critical situation.

Roles in Normal situation Roles in Critical situation

Model the Way Art to grab the trial situation

Inspire a Shared Vision Swift adoption of technology

Challenge the Process Use of Emotional Intelligence

Enable Others to Act Contemporary Communication

Encourage the Heart Asseverate financial status of the organization

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Managerial Implications

The present COVID-19 crisis brought miseries, for now and in coming future it has a colossal
impact on us not only at the individual level but also at organizational, societal levels across
the globe. At the organizational level, the crisis of COVID -19 the role of leaders is
considered to be vital cause leadership helps in reshaping their organizations and adapting
different strategies to respond the changing circumstances for the survival during and after the
crisis. At this, any one of us might argue that during the crisis, leaders have goal-driven
opportunity and many strategic leaders to turn challenges into win – win situation and give
institutions competitive advantage. In the trial circumstances the way you treat your
employees will never be forgotten in the coming future (Kohlls,2020).In light of the current
crisis, among the emerging trends leadership communication is the top of the most .It is
crucial for leaders to be in constant touch and communication with all stakeholders not only to
reduce their stress but to address their needs too .The personal and work lives are greatly
affected due to this pandemic and employees look up to organizations to find the answers of
their issues like about their safety measures, job security and similar other things that matter
to them. Leaders must be acquainted with the impact of their communication with
stakeholders. For this purpose, it is essential that the communicated messages must be
realistic concise, clear, positive, comprehensive, and delivered through appropriate channels.
In addition, the strategic leaders must specifically explain their stakeholders about the crisis
concerned strategy and also shared their vision to combat and respond to present and future
challenges. To convey a concise message that holds the complexity of the crisis of the
situation and disburse the way ahead, enable leaders to not only win the trust of all
stakeholders in the organization but also those who lead and guide it. Mutual leadership
potential is another important trait that emerges in this discussion. Collective effort is required
to face and respond to the challenges of a crisis like the current COVID-19 pandemic. It is the
time when we cannot just rely on the traditional approaches; transformational or dynamic of
leadership notions to confront such unpredictable crises and uncertain circumstances.
Collective efforts of leadership are therefore the need of the time (K M. Dirani et al,2020).
Scholars suggested that besides setting organizational priorities and decision making it is the
responsibility of top leaders to be get ready with the efficient team and effective plans to
combat with the crisis like Covid-19. Sharing responsibilities among leaders develop the
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sense of ownership which build the trust and enhance the commitment to stakeholder via
prompt decisions through motivated and energetic team members which ultimately leads to
the growth and productivity of organization (Kezar and Holcombe 2017).

Based on our discussion, another important outcome of sensible leadership is encouraging and
promoting organizational resilience, the ability of an organization to improve responsiveness
to changes with enough alacrity for the survival of organization by absorbing scourge and to
attain new better position than before the crisis. It needs to be more creative and innovative
response of organizational policies to get out of the crisis. This approach endorses that there is
not one-size-fits-for all to confront organizational challenges. Basically it is based on the
assumption that not all critical situations are similar so different situations need different
attitudes of responses. Hence, leadership require to adopt prompt and flexible mindset for
operational thinking and decision making. Research studies expressed that for organizational
survival in crisis and to come out of it, leader must require to develop the strategic priorities
and planning and making flexible decisions for contemporary communication in an adaptive
environment for the productivity. Moreover, this adaptive and flexible culture enable
organizations to figure out the basic issues of employees and recent challenges and ultimately
respond them more efficiently. (Raney 2014; Caminiti 2020).

Conclusion

Present pandemic situation expressed that decision making processes occur in unstable and
uncertain environment, but most of the HRD and leadership studies look at predictable and
stable working conditions. Here, we suggest that HRD professionals and researchers should
analyze critical mediations that can be applicable during uncertain conditions and to figure out
the possible favorable and unfavorable consequences of these applied mediations. In the
present article we investigated the effects of the critical situation like pandemic COVID -19,
on workers and their changing needs in response to the crisis. Examples from industrial and
political leadership explore that strong and competent leadership emerged through crisis and
this Leadership need to respond to these challenges by first sense making and using their art
to grab the critical situation along with relying on their hunch and HRD practioners and then
adapt competencies accordingly. In the time of the recent pandemic, those organizations will

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survive which work under strong and supportive leaders who believe on the concept of shared
leadership, innovative and contemporary communication ensuring worker’s accessibility to
adaptive technology also employee’s emotional status is their priority besides asseverate
financial status of the organization and encouraging organizational resilience. In the last we
recommended that the strategic role of HRD Professionals can play vital role to help and
evolve leaders amid this pandemic by providing reliable data to the leaders, developing their
professional links, advancing innovation, promoting and enhancing employee’s adaptive
learning. In short it is the time when Leaders need to work with HRD to respond this
challenging situation of pandemic and for the survival of industries.

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